Coca-Cola Amatil Posts Drop In H1 Profit

Coca-Cola Amatil

reported a 16% fall in its first-half profit. Coca-Cola Amatil's net profit for the period declined to 182.3 million Australian dollars (US$169.6 million), from A$215.9 million, in the year-ago period. Analysts were expecting a profit of around A$173 million. Earnings before interest and tax (EBIT) dropped 12% y/y to A$317 million ($295 million) in the period. EBIT in Australia shrank 14.1% to $226.5 million, while EBIT in Indonesia tumbled 83.4% to $5.2 million. Its also lowered its interim dividend to 20 cents per share, versus 24 cents per share. The company also announced its plans to lower more than A$100 million of costs over the next three years. “While it's too early for full-year guidance, we expect earnings for 2014 to be materially below 2013,” Coca-Cola Amatil chief executive Alison Watkins said. Coca-Cola Amatil shares gained 0.83% to close at $9.07 yesterday.