Coca-Cola Amatil said its full-year pre-tax earnings are likely to fall 13.9 per cent on last year’s figures to $550.7 million, and net profit will fall 13.4 per cent to $340.3 million, in an update to the market on Friday.
The result comes after a non-binding bid from Coca-Cola European Partners to combine the businesses which valued CCA at $9.28 billion. According to CCA, a booklet outlining the possible scheme of arrangement will be sent to shareholders in early March.
Managing director Alison Watkins said, however, the business delivered a strong result during its fourth quarter across both Australia and New Zealand – largely a result of the lifting of Covid-19 restrictions on the state of Victoria.
“Whilst we are encouraged by recent trading in Australia and particularly in New Zealand, month to month volatility remains,” said Watkins.
“This is particularly the case in Australia, where on-the-go trading can vary considerably by state depending on the prevailing Covid-19 restrictions and related sentiment at any given point in time.”
In FY20 more of Coca-Cola’s customers took to drinking its beverages at home, purchased from supermarkets, which has begun to put a strain on the business’ margins.
During the year grocery volumes rose 4.3 per cent, while convenience and petroleum volumes rose 0.4 per cent. Meanwhile, on-the-go volumes fell 16.3 per cent.