CANBERA (dpa-AFX) - Coca-Cola Amatil (CCL.AX) reported that its profit attributable to shareholders for the year ended 31 December declined to A$246.1 million or A$0.32 per share from A$393.4 million or A$0.52 per share in the prior year.
Trading revenue for the year rose to A$5.15 billion from A$5.09 billion last year.
Looking ahead, the company said it continues to target mid-single digit EPS growth in line with shareholder value proposition. Its level of performance will depend on the success of revenue initiatives in Australia, Indonesian economic factors and regulatory conditions in each of markets.
The company will commence an on-market share buy-back program of up to A$350 million from late March 2017.
Final dividend declared of 25.0 cents per share, franked to 75 per cent, representing an underlying payout ratio of 84.1 per cent for the full year, with free cash flow positive after dividend payments. It is anticipated that from 2017, franking will be lower than current levels.
Coca-Cola Amatil announced that Mr David Gonski will retire as Chairman of the Board and Non-Executive Director of the Company following the completion of the Annual General Meeting in May 2017. Mr Gonski will be succeeded as Chairman by Ms Ilana Atlas.
Coca-Cola Amatil also announced the appointment of Mr Paul O'Sullivan as a Non-Executive Director, effective 1 March 2017as part of the Board's ongoing renewal process.
Separately, Coca-Cola Amatil announced it would invest around A$90 million over three years to remodel its supply chain across Australia. It said about 180 employees and contractors were affected by the decision, and Amatil would work with each one individually in order to provide financial counselling, personal support and assistance in finding new positions. Where feasible, some permanent staff will be redeployed to other positions within the company.
The review identified opportunities for improvements in Amatil's supply chain, recommending increased production in Queensland and Western Australia and the closure of the Company's manufacturing operations in South Australia in 2019.
Coca-Cola Amatil Group Managing Director, Alison Watkins said, 'As an outcome of the review, we will make a $90 million investment at Richlands in Queensland. This will include a new glass production line and new dairy and juice production capacity.'
The company will be closing its South Australian manufacturing facilities, principally at Thebarton,in 2019.
In addition to Richlands, other manufacturing activities would also shift to Kewdale in Western Australia, Moorabbinin Victoria,and Northmead in NSW.
The closure of manufacturing facilities in South Australia will deliver a further A$20 million in cost savings from 2020. There is also expected to be about A$50 million of one-off costs associated with this program expected to be offset by surplus profit from the proposed sale and leaseback of the Richlands site and sale of the Thebarton site following its closure.
Copyright RTT News/dpa-AFX