Aug. 20 (Bloomberg) -- Coca-Cola Amatil Ltd., Australia’s largest listed drinks company, fell the most in more than three months in Sydney trading after first-half profit declined and the company said full-year earnings would miss estimates.
Net income fell 12 percent to A$216 million ($195 million) in the six months through June, the Sydney-based company said. That compared with the A$220 million average of three analysts’ estimates compiled by Bloomberg. The shares declined 5.5 percent, the biggest drop since May 7, to close at A$12.04.
Earnings were hurt by competition with Tokyo-based Kirin Holdings Co., which distributes Pepsi in Australian supermarkets, Amatil said. Full-year earnings before interest and tax may fall as much as 4 percent below last year’s result, the Australian beverage maker said. That would be 22 percent lower than the A$890 million average of 11 analyst estimates compiled by Bloomberg.
“We remain concerned by the level of competitive price discounts,” Warwick White, Amatil’s managing director for the Australasia region, said in an conference call with investors after the announcement. “We are taking a more cautious view on second-half growth expectations.”
First-half earnings before interest and tax, or Ebit, excluding one-time items, fell 6.9 percent, Amatil said. Last year’s Ebit was A$719.2 million, according to data compiled by Bloomberg.
Amatil shares have dropped 10 percent this year, compared with a 9.2 percent advance for the benchmark S&P/ASX 200 Index.
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