Coca-Cola Amatil Profit, Forecast Miss Estimates on Supermarkets
Coca-Cola Amatil Ltd. (CCL), Australia’s largest listed drinks company, posted first-half profit that missed analyst estimates and said a measure of full-year earnings would be as much as 22 percent below expectations.
Net income fell 12 percent to A$216 million from A$246 million a year earlier, the Sydney-based company said in a regulatory statement. That compared with the A$220 million average estimate of three analysts surveyed by Bloomberg.
Competition in Australian supermarkets, where Woolworths Ltd. and Wesfarmers Ltd. (WES) units have an 80 percent market share, weighed on profits, the company said. Full-year group earnings before interest and tax may fall as much as four percent below last year’s result, missing the A$890 million average of 11 analyst estimates by about 22 percent.
“While the Australian non-grocery business continues to perform well, the trading conditions in the grocery channel continue to be challenging,” Terry Davis, group managing director, said in a statement.
Ebit fell 6.9 percent during the first half excluding one time items.
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