The Coca Cola Amatil Ltd (ASX: CCL) share price popped almost 6% higher after reporting its result.
Coca-Cola Amatil is the Australian distributor and rights holder to the famous Coca-Cola brand (which is owned by the US parent Coca-Cola Company). Coca-Cola Amatil started life in 1904 as British Tobacco Company. The ‘Amatil’ in its name came in 1977 when it was renamed as Allied Manufacturing and Trade Industries Limited (AMATIL).
Coca Cola Amatil’s Bubbly Result
In the 2019 half year result Coca Cola Amatil reported that its total revenue increased by 5% to $2.43 billion.
Coca Cola’s Ongoing EBIT (click here to learn what EBIT means) fell by 3.8% to $289.9 million. Looking at some of the individual results, Australian beverages EBIT fell 8.3% to $161.6 million, New Zealand & Fiji EBIT rose 15.1% to $57.3 million and Alcohol & Coffee EBIT rose 10.2% to $24.8 million.
The company said Australian Beverages showed pleasing progress from its Accelerated Growth Plan.
Statutory net profit after tax (NPAT) rose by 6.3% to $168 million.
A couple of months ago the company announced the successful completion of the SPC business to Shepparton Partners Collective for $40 million with a profit of $14 million on completion.
Coca Cola also said that it is making good progress with its property portfolio, including the sale of lots 2 and 3 of its former bottling facility site in South Australia.
Coca Cola Dividend
For the half year, the Coca Cola Board declared a total unfranked dividend of 25 cents per share, comprising an ordinary interim dividend of 21 cents per share and a special dividend of 4 cents per share after the sale of SPC.
Is The Coca Cola Share Price A Buy?
Coca Cola said that the end of 2019 would mark the completion of its two-year transition period.
The company continues to invest in its segments, with costs of up to $30 million, for longer term returns and management are targeting a return to delivery of mid-single digit profit/earnings per share from 2020.
It’s quite different to most other shares on the ASX, but I’m not sure how much profit growth it can create over the longer term. Food brands are finding it tougher these days.
I prefer the idea of investing in reliable businesses that face less competition, like the ones revealed for free in the report below.
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