|Bid||8.62 x 426000|
|Ask||8.64 x 149800|
|Day's range||8.58 - 8.64|
|52-week range||7.52 - 10.87|
|PE ratio (TTM)||34.90|
|Earnings date||20 Feb. 2018 - 26 Feb. 2018|
|Forward dividend & yield||0.38 (6.06%)|
|1y target est||8.37|
Coca-Cola Amatil Ltd (ASX:CCL) has been a dreadful investment over the last 5 years, down 36%. I reckon it may have bottomed, as its defensive qualities become better appreciated.
Shares in Coca-Cola Amatil have jumped after Citi analysts upgraded the company to a buy rating, forecasting a stabilisation in earnings from its Australian business and growth potential in Indonesia. Citi expects revenue growth from Coca-Cola's Australia division to return in the 2018 financial year, citing an acceleration in new product launches, water pricing changes and the targeting of cafe and restaurant customers as a new channel for growth. The upgrade comes less than a week after the soft drinks company warned its earnings would be impacted by $40 million of incremental spending aimed at driving growth in its Australian business.
Shares in Coca-Cola Amatil have hit their lowest level in almost a decade after the drinks distributor warned its earnings will be impacted by $40 million of spending aimed at driving growth in its Australian drinks business. Managing director Alison Watkins said on Wednesday that $40 million of investments planned for 2019 and 2020 will be now be made in 2018, to increase marketing, lower prices, add new drink machines and improve technology. Citi markets equities director Karen Jorritsma said the share price fall was a reaction to the cost of the new investment.
Coca-Cola Amatil says its earnings will be impacted by $40 million of investments aimed at driving growth in its Australian drinks business. "Our Accelerated Australian Growth Plan brings forward around $40 million in reinvestment of cost savings to 2018, to deliver increases in marketing, execution, cold drink equipment, digital technology and price," managing director Alison Watkins said in a statement ahead of an investor briefing in Jakarta. Underlying earnings in Coca-Cola's Australian beverages division, which includes the Coca-Cola, Mount Franklin and Monster Energy brands, dropped 13 per cent in the first half of 2017.
Beverages giant Coca-Cola Amatil has boosted its presence in the craft beer market by acquiring West Australian craft brewer Feral Brewing Company. Feral was founded in 2002 as a family-owned independent brewery in WA's Swan Valley producing the brands Feral Brewing Co, Perth Local Lager and Brewpub Series. Feral Brewing produces about 7.2 million litres of beer per year.