While most ASX listed companies operate on a June 30 financial year there are a handful of major companies that operate on a calendar year basis. One such company is leading beverage bottler Coca-Cola Amatil Ltd (ASX: CCL).
With the December 31 full year fast approaching, investors will in a few months' time get the opportunity to scrutinise Coca-Cola Amatil's results.
With the share price essentially flat over the past 12 months what should investors be expecting?
Interim results showed modest growth
For the six months ending July 3, revenue grew 4.8% to $2.5 billion, profit after tax and earnings per share (EPS) climbed 0.9% to $184 million and 24.1 cents per share (cps) respectively.
Second-half expectations
In the current half, investors will be looking for management to achieve cost savings and deliver on stated aims such as increases in both volumes and revenues. These goals are expected to be driven by pricing, brand building, innovation and route to market improvements.
Investors will also no doubt be keeping a close eye on the ongoing battle for market share between supermarket chains Coles, owned by Wesfarmers Ltd (ASX: WES) and Woolworths Limited (ASX: WOW). This competition has been detrimental to Coca-Cola Amatil as the major supermarkets have allegedly wielded their buying power against suppliers.
Full-year forecasts
Management has stated that it is targeting to return to mid-single-digit growth in EPS over the next few years with no further decline expected after 2014.
Data supplied by Thomson Consensus Estimates shows analysts are forecasting EPS to increase to 50.9 cps and dividends to total 43 cps in 2015. Based on this consensus view, the stock is trading on a price-to-earnings ratio of 17.8 times and with a yield of 4.7% (franked to 75% currently).
