The Coca-Cola Amatil Ltd (ASX: CCL) share price soared as much as 5% higher this morning on the back of a robust profit result.
For the year ended 31 December 2015, Coca-Cola Amatil reported a 3.1% increase in revenue, to $5,093.6 million, and a net profit of $393.4 million, up 4.8% on the prior period.
Pleasingly, the company announced a 75% franked final dividend of 23.5 cents per share, up 6.8% on last year's payment.
The company said Australian Beverages revenue stabilised during the period and confirmed the entire group is on track to return to mid-single-digit growth in earnings per share.
"This 2015 result is consistent with our plans and the guidance we provided in 2014 despite challenging conditions," Coca-Cola Amatil CEO Alison Watkins said. "We are delivering on our strategy of strengthening our category leadership, making a step change in our productivity and in-market execution, and building better alignment with The Coca-Cola Company and our other partners."
In recent years, Coca-Cola Amatil has struggled to come to grips with increasing competition, a challenging Indonesian business and the changing preferences of consumers who are seeking better-for-you products.
"Stabilising our core Australian Beverages business is an important achievement and we are delighted with the growth of New Zealand & Fiji and Alcohol & Coffee," Ms Watkins added. "While the Indonesian economy has been difficult we are working well with The Coca-Cola Company to realise its long term potential. "
Over the year, the Alcohol & Coffee Beverages business reported a 31.7% jump in operating profit while the Indonesian business upped its result 9.9% to $48.7 million.
Looking ahead the company says its strategy is to leverage its brand power in the evolving consumer market.
"We are seeing the benefits of our product and geographic diversity which has allowed us to build momentum in the face of challenging conditions and structural shifts in the Sparkling Beverages category," Ms Watkins said. "Importantly the "One Brand" approach continues the journey we started in 2015, moving from separate brands and separate ideas across the Coca-Cola trademark, to one brand with different product choices to meet all our consumer needs."
Outlook
The company says it's on track to return to mid-single-digit earnings per share growth in the next few years. It said net finance costs will be in-line with 2015 due to the benefit from The Coca-Cola Company's $US500 million cash injection in Indonesia. It also said it would target a dividend payout over 80% of profit in the medium term.
