Coca-Cola Amatil (ASX:CCL) announced its half year results ending 3 July 2015. Earnings came in as expected, gaining modestly on the previous corresponding period.
The company reported revenue of $2.4 billion, up 4.9 per cent on the previous corresponding period (pcp). EBIT came in at $316.9 million, up 0.1 per cent on the pcp. Net profit attributable to members increased by 0.9 per cent to $183.9 per cent on the basis of a Net profit which increased 2.6 per cent to $187.3 million. Earnings per share came in at 24.1 cents per share, up 0.9 per cent on the pcp.
A strong balance sheet allowed for the payment of an interim dividend of 20.0 cents, franked 75 per cent, which is in line with the interim dividend declared in the first half of last year. The interim dividend represents a payout of 83 per cent of first half net profit.
CCA Group Managing Director, Alison Watkins commented, “The business has delivered a first half result which is consistent with our internal plans and the guidance we have provided previously. The results were achieved despite trading and economic conditions that were more challenging than we had expected in Australia and Indonesia. Concrete progress has been made in implementing strategies to strengthen the market leadership position of the Company across our markets, which we believe will enable us to return to growth over the next few years and generate long-term shareholder value”
Going forward, CCA is targeting mid single digit growth in earnings per share over the next few years and to maintain a dividend payout ratio of over 80 per cent. Ms Watkins commented, “Whilst trading conditions have been more challenging than expected in our major markets, we remain confident that the combination of revenue and cost initiatives we have underway will restore CCA to growth.”
CCA’s share price has been under pressure over the last couple of years, falling over 40 per cent since its high in early 2013. After consecutive years of declining profits, the company made a recovery in February this year after reporting a 240 per cent rise in net profits. Today’s half year results are in line with forecasts and will likely cause little change to the company’s share price.
Author: Ben Visser
Aug 21, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.