Coca-Cola Amatil (ASX: CCL) has delivered an increase of 80.9 per cent increase in annual net profit to $445.2 million with the big rise attributable to one-off writedowns from the previous year.
While underlying profit and underlying earnings were down slightly, net profit was up from last year's $246.1 million when the company made a $171.8 million write-down on its SPC fruit canning business.
Statutory earnings were also up by 45.5 per cent to $678.4 million and the company has also declared a final dividend of 26 cents, 70 per cent franked.
The company says it is still struggling with declining earnings in Australia but there were positive sales out of New Zealand & Fiji, Indonesia & Papua New Guinea, and the alcohol & coffee divisions.
Coca-Cola Amatil group managing director, Alison Watkins, says the Indonesia & PNG and Alcohol & Coffee segments delivered combined growth for the group of more than $50 million over the past two years.
Watkins says the growth of the company is on track and the company remains committed to its shareholders.
"We are pleased with the performance we are seeing in our growth business and expect this to continue," says Watkins.
"Our Accelerated Australian Growth Plan, announced in November 2017, will see an addition investment of approximately $40 million in 2018 across marketing, execution, cold drink equipment, technology and price."
Watkins says this $40 million investment will hurt the bottom line for the 2018 calendar year, and negatively impact the group's earnings.
Coca-Cola Amatil's Australian operations have struggled as consumers move away from sugary, carbonated beverages in favour of healthier options.
Shares in the beverage company are up 4.14 per cent to $9.05 per share at 11.00am AEDT.
Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Get our daily business news
Sign up to our free email news updates.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support