Coca-Cola Amatil has announced a special dividend for shareholders, funded by the sale of vegetable canning business SPC, which was finalised last month.
The beverage bottler reported its half year results on Thursday, revealing that net profit rose 6.3 per cent to $168 million, while group revenue grew 5.2 per cent for the half to $2.41 billion.
The company reported success in its non-carbonated, better-for-you drinks such as vitamin water and teas, which lifted organic revenues.
Earnings before interest and tax (EBIT) was down 3.9 per cent on the prior corresponding period to $289.9 million, but was in line with expectations.
“The end of 2019 will mark the completion of our two-year transition period,” said Coca-Cola Amatil managing director Alison Watkins.
“We’ve set ourselves the target of a return to mid-single digit EPS (earnings per share) growth from 2020. While there’s more to be done, these results show good progress towards that goal,” she said.
Amatil declared a total dividend for the half of 25 cents per share, including a 21 cent interim dividend and a 4 cent special dividend funded by the sale of SPC, which will be paid on October 9.
Watkins said the Australian Beverages arm is positioned for growth in 2020.
“We remain committed to our shareholder value proposition and target a return to delivery of mid-single digit earnings per share growth from 2020.”
“Achieving this target will depend on the success of our revenue growth initiatives in Australia, Indonesian economic factors and the regulatory conditions in each of our markets,” she said.