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.