Coca-Cola Amatil Limited (ASX: CCL) has released its full-year results for FY 2018. In the FY18 results, the company has noted that its earnings for the full year were impacted by investments that the company made in its Accelerated Australian Growth Plan. Further, the earnings of FY 2018 were also affected due to the employment of container deposit schemes.
The company has reported an Underlying EBIT from continuing operations of $634.5 million in FY18 which is 6.5% lower than the previous corresponding period (pcp). The company’s underlying net profit after tax (NPAT) from continuing operations also decreased by 6.5% on the previous year and reached $388.3 million. Following the release of the results, the share price of the company decreased by 1.32% in the intraday trade as on 21 February 2019 (AEST 2:30 PM).
The volume share of Australian Beverages witnessed growth in FY 2018, particularly in sparkling and still beverages. The company witnessed volume growth for Coca-Cola Trademark in the H2 FY 2018 and during the year, the company also experienced low-single digit volume growth for Low- and no-sugar cola and witnessed strong volume growth in dairy and energy.
In New Zealand, the company performed well and witnessed growth in its revenue, volume and EBIT, despite cycling a strong FY 2017 but facing difficult weather conditions in December, and moreover, the company’s business witnessed growth in sparkling and still categories beverages.
The results in Indonesia were impacted by difficult market conditions, a weaker Indonesian currency and increased commodity prices; however, despite this, the business in Indonesia improved value share in the sparkling beverage category. In Papua New Guinea,the company witnessed growth in its revenue despite facing operational issues. The Operational issues were mostly resolved in the second half of FY 2018.
In Alcohol segment, the company reported volume growth with revenue witnessing high single-digit growth and EBIT witnessing double-digit growth. In the Coffee segment, the company witnessed growth in both revenue and volume, driven by the sales in coffee bean products and sales in grocery.
While commenting on the Outlook of the company, the company’s Managing Director Ms.Alison Watkins told that 2019 will be the second year of a two-year transition phase for the Group. She further told that, in Australian Beverages, the company will be positioned for growth in 2020. In FY 2019, The company is planning to complete a further $10 Mn of investment in its Accelerated Australian Growth Plan so that it could expand its salesforce and it is targeting an EBIT loss of $10 to $12 million for FY 2019.
The company has declared a Final dividend of 26.0 cents per share, 50% franked, representing an underlying payout ratio of 87.6 per cent on a continuing operations basis for the full year.
Meanwhile, in the last six months, the share price of the company decreased by 12.28% as on 20 February 2019. CCL’s shares traded at $8.250 with a market capitalization of circa $6.05 billion as on 21 February 2019 (2:30 PM).
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