Coca-Cola Amatil has reported annual sales and profit figures broadly in line with its trading update last month, with sales volume down 8.4 per cent for the full year and after-tax net profit down 51.9 per cent due to impairments and non-trading items.
The beverage maker’s sales improved in the second half of the 2020 trading year, down 5.4 per cent compared with an 11.6 per cent decline in the first half.
“Our tight management of costs across the group partially offset the adverse impact of Covid-19 on trading activity,” said group MD Alison Watkins. “Our financial performance under these challenging conditions, with our strong cash realisation and reduction in net debt, is a testament to the strength of our businesses and the tenacity of our people, partners and customers.”
Watkins said the company delivered strong performance in the all-important lead-up to Christmas in both Australia and New Zealand, however Covid-19 contributed to challenging conditions in Indonesia.
Cost-control measures led to savings of $140 million across the group, including $20 million in direct marketing expenditure.
Those savings enabled the group to deliver ongoing EBITDA of $898.9 million for the year (down 9 per cent year on year), and ongoing post-tax profit before impairments of $340.3 million (down 13.6 per cent).
“Our ability to tightly manage costs and capex and grow market share in our major markets throughout such a challenging year, demonstrates the strength and resilience of our business model,” said Watkins.
“Looking ahead we are well progressed in implementing our Fighting Fit program which is expected to deliver additional cumulative savings of $85 million by FY22.
“We are confident that our enhanced competitive position together with our strong balance sheet, ample liquidity, robust cashflows and solid credit rating position us well financially and operationally to emerge a stronger, better business,” she said.
