On Wednesday, Coca-Cola Amatil Ltd (ASX: CCL) reported its result for the full year to 31 December 2017.
Coca-Cola Amatil is the Coke manufacturer and distributor in the Asia Pacific region. It also claims to be the largest manufacturer and distributor of ready to drink non-alcohol and alcohol beverages, coffee and ready-to-eat snacks in the region.
Here are some of the highlights compared to last year:
- Profit up 80.9% to $445.2 million
- ‘Underlying’ profit down 0.4% to $416.2 million
- ‘Underlying’ EBIT, down 0.7% to $678.7 million (What does EBIT mean?)
- Dividend increased to 26 cents per share
The key segment to Coca-Cola Amatil’s business is its Australia beverages segment. This segment saw revenue decrease by 3.3% which was a combination of volume decreasing by 2.5% and revenue per unit case decreasing by 0.9%. The underlying EBIT decreased by 6.4% as a result to $412.6 million. Management blamed this on competitive pressures in the cola and water categories.
The New Zealand and Fiji segment saw growth by comparison. Revenue increased by 0.5% as revenue per unit case increased by 0.4% and volume increased by 0.1%, leading to underlying EBIT growth of 5.1% to $104.8 million.
Indonesia & Papua New Guinea and the alcohol & coffee segments both increased EBIT by 30.6% and 11.2% respectively.
Management were pleased to disclose that the company had lower net finance costs despite increased net debt, resulting from lower interest rates in Australia.
Coca-Cola Amatil Managing Director, Alison Watkins, said “Our diverse portfolio of businesses and strong balance sheet enabled us to deliver EPS growth for our shareholders, notwithstanding the challenges experienced by Australian beverages at the start of the year.”
Ms Watkins said that Coca-Cola Amatil remains committed to the shareholder value proposition and medium-term delivery against those targets.
“Our level of performance will depend on the success of revenue initiatives in Australia, Indonesian economic factors and regulatory conditions in each of our markets”
In the medium term we continue to target mid-single digit EPS growth – Watkins
The Coca-Cola Amatil share price is up 1.73% today to $8.84 according to Google Finance.
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