C-C Amatil profit seen flat due to losses in Indonesia
C-C Amatil profit seen flat due to losses in Indonesia
SYDNEY (Reuters): Losses in Indonesia and poor results from
Europe are expected to force Australian-based soft drink bottler
Coca-Cola Amatil Ltd to report a flat or slightly lower first
half profit on Thursday.
Analysts said they expected C-C Amatil to post net profits
before abnormals in the six months to June 30 of about A$95
million, slightly down from A$98.1 million in the first half of
1997.
Forecasts range from A$85 million to over A$100 million, with
most grouped around A$95 million to A$98 million after C-C Amatil
itself said in mid-May it expected first half pre-abnormal
profits to be around last year's A$98.1 million.
But C-C Amatil warned however the profit could be lower if
conditions in Indonesia deteriorated further.
Since that warning Indonesian GDP was forecast to fall 15
percent in 1998 and 1999.
"You should get a good result out of Australasia and the
Philippines, but Europe and Indonesia will be the problems," said
one Sydney analyst.
A hot summer in Australia and New Zealand, along with price
increases and lower plastic bottle production costs are expected
to boost Australian earnings before interest and tax (EBIT) by
over 15 percent to more than A$100 million.
European EBIT is expected to fall to about A$30 million from
over A$40 million a year earlier because of higher capital
expenditure and depreciation.
"Indonesia remained difficult after the company warning and we
think that a lower result will be reported," Macquarie Equities
analyst Raewyn Ellis Doff said in a result preview, which
forecast a net profit of A$85 million.
C-C Amatil's earnings per share are expected to slide about 20
percent to around 11.5 cents because of the issue of 293 million
shares to San Miguel Corp and The Coca Cola Co to pay for C-C
Amatil's Philippines acquisition in the first half of 1997.
The first half result which includes the Philippines
operations compares with the half a year ago which included only
three months of Philippines operations.
It will also include Coca Cola Amatil's European operations,
which have been separated since June 30 and listed in a separate
vehicle, Coca Cola Beverages Plc.