On Friday, Coca-Cola Amatil provided the market with a preliminary update on trading for the fourth quarter and the full 2020 financial year. The beverage giant reported that it delivered a strong trading performance in the all-important Q4 Christmas period in both Australia and New Zealand, with strong demand experienced in both markets.
The Australian Grocery channel was the standout, with volumes also up across most channels in New Zealand. Despite lockdown impacts in Victoria and Auckland respectively. Group volumes for the fourth quarter were only down 5.4% compared to the prior comparative, which was pre-COVID.
In Australia, there are positive signs that volume and OTG channels are recovering as COVID-19 restrictions lift, which recent market share gains were supported by a shift in demand from CBD to suburbs and regions. NZ is continuing to benefit from easing of COVID-19 restrictions. While in PNG, by October volumes had also returned to pre-COVID levels.
Whilst the company is encouraged by recent trading in Australia and particularly in New Zealand, month to month volatility remains and the Indonesian business continues to face challenging trading conditions.
Preliminary expectations are that the group will deliver FY20 ongoing EBIT of $550.7 million, down 13.9% on FY19. While FY20 ongoing NPAT is expected at $340.3 million.