Coca-Cola Amatil is celebrating its Australian business recording its first full-year revenue increase since 2012.
The full-year results for 2019 include a 6.7% rise in trading revenue, with ongoing earnings before interest and tax (EBIT) increasing to $639.3 million.
Statutory net profit after tax (NPAT) of $374.4 million was up 34.2% and statutory earnings before interest and tax (EBIT) of $603.4 million was up 31.9%.
Ongoing earnings before interest and tax of $639.3 million were up by 0.8% and ongoing net profit after tax of $393.9 million increased by 1.4%.
Group Managing Director Alison Watkins said the results were a pleasing performance for the Coca-Cola Amatil Group, with top-line revenue growth reflecting the impact of its business initiatives across each market.
“This result supports our goal of delivering mid-single digit earnings per share growth in 2020 and over the medium term.”
Among the highlights were volume growth for total sparkling beverages, driven by the Coca-Cola Trademark due to double-digit growth of Coca-Cola No Sugar.
The company noted: “This strong performance was offset by a slight decline in Classic Coca-Cola, however volume growth in this variant was achieved in 2H. Targeted execution in state immediate consumption channel and the Share a Coke campaign contributed to this result.”
“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,” Watkins added.
“We’ve heard the message on consumer wellbeing, and we’re delivering with reductions in sugar content across the portfolio of sales.”
It was a less rosy picture for Coke Energy, which experienced “post launch underperformance”. However, this was offset by “strong performance” of Monster.
Double digit growth for alcohol & coffee
Alcohol & Coffee achieved its fifth successive year of double-digit EBIT growth with a strong performance in spirits and RTDs, driven by Canadian Club and innovation such as Koyomi premix and Roku Gin.
There were also significant value share gains in rum, vodka and gin over the year, but Amatil noted there was “pressure in some segments of the beer market”.
Coffee sales delivered increased revenue and volume, driven by good performances in grocery.
“The business continued to work closely with all brand partners including Beam Suntory, and Molson Coors International,” the company noted.
“Other developments included strong growth in the Feral craft beer portfolio and a new distribution agreement with New Zealand-based brewer Fortune Favours.”
Outlook for Amatil
Watkins said the end of 2019 marked completion of the two-year transition period for the Group.
“We expect to deliver mid-single digit earnings per share growth in 2020 and over the medium term,” she said.
“Our plans envisage higher earnings growth in the second half of 2020 than the first half.
“We remain on watch for flow-on effects on the economy of the bushfires in Australia and coronavirus (COVID-19).
Coca-Cola Amatil donated 280,000 bottles of beverages, gave paid leave for volunteers, cash donations to registered charities and employee matching, and offered a small business customer relief package.
