The COVID-19 pandemic hit Coca Cola Amatil hard in major markets in Australia, New Zealand, and the Pacific and Indonesia as retail outlets such as cafes and small supermarkets, cinemas, and theme parks were forced to close by the widespread lockdowns.
In more normal times - and nothing is normal at the moment - low oil prices benefit the global economy and stocks such as manufacturers and transport companies. Tim Boreham outlines those Australian companies which stand to benefit from significantly lower energy prices.
Coca-Cola Amatil as withdrawn FY20 guidance. On the one hand the company is benefitting from consumer stockpiling but on the other it is losing sales due to cancelled events, crowdless sport and a general stay-at-home trend.
The second half of 2018 was a little weaker than Credit Suisse forecast. There is no change to guidance and 2019 remains a transition year as the company invests in Australian selling capacity and increases marketing expenditure in Indonesia.
Morgans believes FY19 will be another transition year for the company, with increased investment in both Australian beverages and Indonesia. The broker expects earnings to fall marginally followed by moderate growth in FY20.
The company will acquire Western Australian Craft beer brewer Feral Brewing. CC Amatil does not intend to change the way the business operates and Deutsche Bank observes there is little detail regarding the purchase.