The Coca-Cola Amatil Ltd (ASX: CCL) share price hit as low as $7.90 today as buyers continue to avoid the stock after it reported a 4.3% fall in profit for the half-year ending June 30, 2017.
Its core Australian cola and other fizzy beverage distribution business continues to struggle with revenues down 5.1% and volumes sliding 3.9% in an indication that consumers' love affair with coke may be waning on the back of health concerns.
The group blamed the volume falls on rising competition, while the profit falls were blamed on, inter alia, the rising cost of goods sold and less profitable channel distribution mixes.
Taking half year earnings per share of 18.5 cents as a reference point the stock sells for 21x annualised earnings on a trailing yield of 5.8%. The group is also completing a share buyback program, although partly as a result net debt has grown $274 million to $1.27 billion as at June 30, 2017.
Dividend seekers may want to give Coca-Cola a miss given there are plenty of other lesser-know businesses that may offer better prospects for capital growth….
