By David Winning
SYDNEY--Takeover target Coca-Cola Amatil Ltd. said its annual profit fell by 52% as it grappled with the impact of the coronavirus pandemic across its businesses in Australasia, Indonesia and the Pacific.
Coca-Cola Amatil reported a net profit of 179.9 million Australian dollars (US$139.5 million) in the 12 months through December, down from 374.4 million a year earlier. The result was dragged down by a midyear impairment of its Indonesia business and other one-time costs.
Annual earnings before interest, tax, depreciation and amortization fell by 9% to A$898.9 million while revenue fell by 6.1% to A$4.80 billion. Directors of the company declared a final dividend of 18.0 cents per share.
"We delivered a strong trading performance in the all important fourth-quarter Christmas period in both Australia and New Zealand," said Managing Director Alison Watkins.
"While our Indonesian business continued to face challenging trading conditions, contributed to by Covid-19 infection rates remaining high and tough macro-economic conditions prevailing, it was able to deliver positive earnings before interest and tax and a strong cashflow for the year," she added.
Coca-Cola Amatil is a takeover target of Coca-Cola European Partners PLC, a major Coke bottler in Europe. Earlier this month, Coca-Cola European Partners increased its takeover offer to A$13.50 a share for Amatil stock held by independent shareholders, from A$12.75 per share. A separate agreement for the European bottler to acquire other Amatil shares from U.S.-based Coca-Cola Co., which owns a 31% stake, is unchanged.
The new offer values Coca-Cola Amatil at roughly A$9.8 billion and is a 5.9% increase over the initial offer price. Coca-Cola Amatil said it is recommending that shareholders vote in favor of the deal, which is the European bottler's best and final offer.
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(END) Dow Jones Newswires