Coca-Cola Amatil lifts profit but Australia weighs on company

Coca-Cola Amatil lifts profit but Australia weighs on company

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

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

Facing the latest impacts of cyber-crime: cyber insurance premiums increase for businesses
Partner Content
As Australian businesses are forced to adapt to a new normal yet again, a different typ...
Aon
Advertisement

Related Stories

Byron, Tweed and Kempsey to go back into lockdown

Byron, Tweed and Kempsey to go back into lockdown

The northern New South Wales local government areas (LGAs) of Byron...

APA throws hat in the ring with bid for AusNet, beats Brookfield's proposal by $382m

APA throws hat in the ring with bid for AusNet, beats Brookfield's proposal by $382m

The race to take control of Melbourne-based AusNet Services (ASX: A...

$15m raised in Series A for Flippa, the world's leading digital marketplace for selling businesses

$15m raised in Series A for Flippa, the world's leading digital marketplace for selling businesses

As an online marketplace for buying and selling business with more ...

Dubber expands AI expertise with $6.6m acquisition of Brisbane-based Notiv

Dubber expands AI expertise with $6.6m acquisition of Brisbane-based Notiv

ASX-listed software group Dubber Corp (ASX: DUB) has today acquired...