The Coca-Cola Amatil Ltd (ASX: CCL) share price has risen today after reporting its results for the second half of the 2019 financial year (HY19) before market open today. CCL shares are up 4.89% to $10.95 at the time of writing after making a new 52-week high this morning of $10.97.
What did Coca-Cola Amatil tell us?
Here are some of the highlights from Coca-Cola's results.
- Total revenue of $2.427 billion – a rise of 5%
- Statutory earnings (EBIT) of $273.5 million – a rise of 4.7%
- Statutory net profit after tax (NPAT) of $168 million – a rise of 6.3%
- Statutory earnings per share (EPS) of 23.2 cents – a rise of 6.4% while ongoing EPS declined by 4% to 23.9 cents
- Sale of SPC cannery fetched $40 million, profit to CCL of $14 million
- Unfranked dividend of 25 cents per share – including a special dividend of 4 cents from the sale of SPC. Not including the special dividend, payout is flat.
As a percentage of total earnings, Australian Beverages (non-alcoholic) made up 55.7%, Alcohol & Coffee at 10.2%, New Zealand & Fiji was 19.8% and Indonesia & Papua New Guinea at 18%. Coca-Cola has noted the impact of the implementation of state-based Container Deposit Schemes (CDS) on Australian earnings – which are down 8.3% on HY18. This impact is expected to continue as Western Australia and Tasmania introduce CDS schemes in 2020 and 2022 respectively.
In the Australian market, increased sales in the Alcohol & Coffee, Frozen, Dairy and Energy divisions offset declines in the Sparkling and Still Water divisions. Standout performers were the Coca-Cola Energy and Nutriboost milk products.
Outlook
The end of 2019 will mark the completion of a two-year transition period for Cocoa-Cola Amatil. While no specific guidance was given, the company expects that the Australian, New Zealand & Fiji, Papua New Guinea and Alcohol & Coffee beverage markets are positioned for increased growth in 2020 and beyond. The company expects "a return to delivery of mid-single digit earnings per share growth from 2020" as well as dividends to return to being franked in 2021 (at least a 50% level).
