Coca-Cola confident of meeting guidance
November 3, 2009
Coca-Cola Amatil Limited (CCL) reiterated its previous guidance of high single digit growth in both earnings before interest and tax and net profit after tax for the second half of the year. The beverage maker said strong first half trading performance has continued during the third quarter with good revenue and volume growth achieved across all business units.
In the company’s third quarter trading update it said it had achieved solid volume and revenue growth in the Australian beverage business, while positive signs were emerging in New Zealand resulting in solid volume growth in the third quarter.
Coca-Cola Amatil said Indonesia achieved strong volume, revenue and earnings growth in the third quarter.
Looking at the divisions, the company said SPC Ardmona delivered solid volume growth in the third quarter in all major categories and remains on track to achieve its full year savings target of approximately $8 million from the rationalisation of its manufacturing sites in the Goulburn Valley.
Pacific Beverages delivered premium beer volume growth of approximately 50% in the year to date.
Coca-Cola Amatil said the impact of the higher Australian dollar on the translation of CCA’s overseas earnings is expected to reduce the reported earnings growth for the full-year 2009 by approximately 1%.
The company added that full year 2009 capital expenditure would be approximately 7.5% of revenue and expects to up-weight capital expenditure in 2010 to approximately 8.5%.
Coca-Cola Amatil said it would invest about $45 million in 2010 to commence the in-line blow-fill manufacture of PET bottles at its Northmead manufacturing facility, with the project expected to deliver cost savings by eliminating empty bottle storage, handling and transport costs as well as achieving a reduction in the amount of PET resin used to manufacture the bottles.
The company expects beverage cost of goods sold (COGS) per unit case for 2009 to increase by 5 to 6% on a constant currency basis and excluding Indonesia.
“The depreciation of the Rupiah against the US dollar and the mix impact of one-way-packs will result in double-digit COGS increases for Indonesia for the full year,” Coca-Cola Amatil said.
“CCA remains on track to achieve the recovery of its cost of goods increases for 2009.”
The company expects COGS increases for 2010 to be in the range of 5 to 6%, excluding Indonesia.
Last month Coca-Cola Amatil issued issued US$400 million in 5-year Notes in the 144A US market, with a coupon of 3.25%, which is equivalent to a spread of 95 basis points over the 5-year US Treasury Note. The company is now funded for all of its debt due to mature in 2010.
As at 1029 AEDT, Coca-Cola Amatil shares were up 2c to $10.30.
In the company’s third quarter trading update it said it had achieved solid volume and revenue growth in the Australian beverage business, while positive signs were emerging in New Zealand resulting in solid volume growth in the third quarter.
Coca-Cola Amatil said Indonesia achieved strong volume, revenue and earnings growth in the third quarter.
Looking at the divisions, the company said SPC Ardmona delivered solid volume growth in the third quarter in all major categories and remains on track to achieve its full year savings target of approximately $8 million from the rationalisation of its manufacturing sites in the Goulburn Valley.
Pacific Beverages delivered premium beer volume growth of approximately 50% in the year to date.
Coca-Cola Amatil said the impact of the higher Australian dollar on the translation of CCA’s overseas earnings is expected to reduce the reported earnings growth for the full-year 2009 by approximately 1%.
The company added that full year 2009 capital expenditure would be approximately 7.5% of revenue and expects to up-weight capital expenditure in 2010 to approximately 8.5%.
Coca-Cola Amatil said it would invest about $45 million in 2010 to commence the in-line blow-fill manufacture of PET bottles at its Northmead manufacturing facility, with the project expected to deliver cost savings by eliminating empty bottle storage, handling and transport costs as well as achieving a reduction in the amount of PET resin used to manufacture the bottles.
The company expects beverage cost of goods sold (COGS) per unit case for 2009 to increase by 5 to 6% on a constant currency basis and excluding Indonesia.
“The depreciation of the Rupiah against the US dollar and the mix impact of one-way-packs will result in double-digit COGS increases for Indonesia for the full year,” Coca-Cola Amatil said.
“CCA remains on track to achieve the recovery of its cost of goods increases for 2009.”
The company expects COGS increases for 2010 to be in the range of 5 to 6%, excluding Indonesia.
Last month Coca-Cola Amatil issued issued US$400 million in 5-year Notes in the 144A US market, with a coupon of 3.25%, which is equivalent to a spread of 95 basis points over the 5-year US Treasury Note. The company is now funded for all of its debt due to mature in 2010.
As at 1029 AEDT, Coca-Cola Amatil shares were up 2c to $10.30.
Leave a Reply