Ahead of its full-year results later in this week, Coca-Cola Amatil has written down the value of its SPC canned fruit and vegetable operations to zero, reflecting the small sale price it expects to receive if it manages to sell the troubled business.
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.
Medium term guidance was reiterated at the investor briefing. UBS remains below management’s targets in its estimates which reflect views around the structural headwinds in Australia and the challenging environment in Indonesia.