LOGIN
REQUEST WALKTHROUGH
search
times
New call-to-action

Tags

See all

Articles

CCL

Coca-Cola Amatil Limited - Report HY19 Results

Jordan Baird

Jordan Baird is the head ASR Wealth Advisers client services desk and has been with the organisation since 2017. He first started investing in his early years. While he believes that investors should leave no stone unturned he has a particular interest in trading based on broad macroeconomic trends along with specific analysis of innovative up-and-coming companies.

Coca-Cola Amatil Limited (ASX: CCL) is a bottler and distributor of non-acholic and acholic beverages that operates in the Asia pacific region and owns the licences for the distribution of Coca-Cola throughout Australia. The Company has a diverse product range that services over 850,000 customers, CCL is also a primary shareholder in the Coca-Cola Company owning 29.4% and acts as a brand partner.

Coca Cola - FY19 results

What are the HY19 results for CCL?

This morning (22nd August 2019) Coca-Cola Amatil reported its HY19 results that are highlighted below:

  • Statutory earnings before interest and tax (EBIT) up 4.7% to $273.5m
  • Statutory net profits after tax (NPAT) up 6.3% to $168m
  • Total half year dividend distribution of 25 cents per share
  • Earnings per share (EPS) grew by 6.4% to 23.2 cents.

 

What are the key drivers of this result?

The Australian beverage sector reported reduced sales volumes for CCL down 1.2% however double-digit growth has continued in the energy and dairy markets. Earning have benefited from the NSW container deposit scheme as well as volume growth in non-sugar options. Offshore markets proved to return higher growth for CCL with Indonesian sales volumes increasing by single digits, whilst New Zealand, Fiji and Papa new Guinea also produced increased sales volumes.  The Company’s strategy for the remainder of FY19 involves a must win approach to leading market share in the cola and water beverage categories, CCL is aware of the increases in sales volumes it must achieve in order to meet this goal by the end of FY19.

 

What is the future outlook for CCL?

Coca-Cola Amatil is expecting to complete its two-year transition period by the end of FY19, this included accelerating Australian growth and embedding container deposit schemes within its business model. The Company offered guidance of returning to mid-single digit EPS growth in 2020 and returning a medium-term dividend payout ratio of 80%. CCL is expecting capital expenditure for FY19 to be approximately $300m.

 

How has the market reacted?

The market has responded positively with the share price rising 4.45% to a price of $10.90 as investor are encouraged by the 6.3% growth in NPAT.

 


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

New call-to-action
New call-to-action

Company Articles

Looking for more Stock Recommendations?

Fill in your details to receive our special report: Top 3 Income Stock Recommendations for 2020.