Coca-Cola Amatil's Fiscal Year Earnings Fall 14% Amid Pandemic
By Mike Cherney
SYDNEY--Australian drinks bottler Coca-Cola Amatil Ltd. said
underlying earnings fell 14% in 2020, but performance in its key
local market improved in the all-important holiday period.
The bottler, which released preliminary 2020 results on Friday,
said underlying earnings before interest and tax, excluding
one-time items, was 550.7 million Australian dollars (US$427.7
million), down 14% from the prior year. Underlying net profit was
A$340.3 million, though no comparison was provided to 2019.
Overall, group volume was down about 8% in 2020 and revenue was
down about 6%. The company's fiscal year aligns with the calendar
Volume in Australia in the fourth quarter, which includes
Christmas, rose 0.4%, marking the first time quarterly volume
increased in 2020. Sales took a hit during the pandemic given that
consumers were stuck at home and couldn't eat out at restaurants
and other venues as usual. Australia is the company's biggest
But volume in Indonesia, once a bright spot for the company,
fell 18% in the fourth quarter, given that coronavirus infection
rates remain high and tough macroeconomic conditions.
The company warned that month-to-month volatility remains and
that sales can vary considerably by location based on prevailing
coronavirus restrictions at the time.
Coca-Cola Amatil said it continues to progress a deal to sell
itself to Coca-Cola European Partners PLC, a Coke bottler in
Europe. Coca-Cola Amatil said it would send a scheme booklet to
shareholders in early March.
Audited 2020 results will be released on Feb. 18.
Write to Mike Cherney at firstname.lastname@example.org
(END) Dow Jones Newswires
January 21, 2021 17:08 ET (22:08 GMT)
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