Amatil’s Australian business drives 34 per cent lift in FY profit

Coca-Cola Amatil has reported a 34 per cent uplift in full year profit, as it marks the end of a two-year transition period for the business.

Earnings before interest and tax increased by 0.8 per cent to $639.3 million, while net profit after tax lifted 1.4 per cent to $393.9 million.

All segments delivered revenue growth, including the Australian business which recorded the first full-year revenue increase since 2012.

It was another strong year for Coca-Cola No Sugar, which drove revenue and volume growth in the Australian Beverages business.

“The continued volume growth in Coca-Cola No Sugar is a testament to consumer enthusiasm for healthier options, and a sign of the strength of our portfolio,” Group managing director Alison Watkins said.

“We’ve heard the message on consumer wellbeing, and we’re delivering with reductions in sugar content across the portfolio of sales.”

Energy and dairy drinks also performed well, with Monster and Nutriboost continuing to be popular with consumers.

The Share a Coke campaign, which was the most inclusive campaign to date, also helped drive growth.

Beyond Australia, the New Zealand and Fiji both recorded profit and volume growth.

Alcohol and Coffee achieved double digit revenue and EBIT growth, helped by strong performance in spirits and premix, however, there was pressure in some segments of the beer market due to challenging conditions and increased competition in Samoa.

Watkins said the company will continue to monitor the flow-on effects of the bushfires and coronavirus on the economy.

“We expect to deliver mid-single digit earnings per share growth in 2020 and over the medium term. Our plans envisage higher earnings growth in the second half of 2020 then the first half,” Watkins said.

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