What to expect from Coca-Cola Amatil Ltd this reporting season

It looks as though confidence could be rising for the embattled Coca-Cola Amatil Ltd (ASX:CCL).

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Coca-Cola Amatil Ltd's (ASX: CCL) share price has crept marginally higher over the last fortnight ahead of its earnings release on Wednesday 20 August, indicating investors may be starting to believe the worst conditions are now behind the business. Since the beginning of the month, the shares have risen 4.1% and are now trading at $9.61.

Despite the recent rise however, they are still sitting dramatically lower than 18 months ago when they hit an all-time high of $15.43. They have declined as a result of tumbling profits caused by aggressive competition, pressures from the supermarket giants and a strong Aussie dollar.

However, under the new leadership of Ms Alison Watkins, a strategic review has been undertaken to improve productivity measures and heavily reduce costs. An update on how the review is proceeding could give shareholders a fresh burst of confidence.

In addition, investors will also be looking for an update on the company's struggles against primary rival Schweppes, earnings growth in Indonesia as well as its dividend. Should its dividend fall too heavily compared to last year's amount, we could see the shares take another tumble.

Should you buy Coca-Cola Amatil Ltd today?

It's impossible to say which way Coca-Cola Amatil Ltd shares will go when they report next week. While good news on its strategic review or a more positive outlook could provide a significant boost for the shares, they could just as likely fall further – possibly below $9.00 – if none of these short-term issues are resolved.

Regardless of what happens, the company is currently trading at a very reasonable price. While they could fall or rise following next week's result, long-term focused investors should strongly consider buying a position.

Motley Fool contributor Ryan Newman owns shares in Coca-Cola Amatil Ltd.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »