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Coca-Cola Amatil’s share price took a hit on Friday as shares dropped as much as 12.8%, marking their lowest share price since June.
At time of writing, beverage maker Coca-Cola Amatil Ltd shares fell 12.8% to $A8.810, making the stock the worst performer on ASX All AUS 200 on Thursday.
Group Managing Director Alison Watkins says its FY18 had been impacted by reinvestment of $40 million of cost savings in Australia.
The company reports it had also been affected by separate container deposit schemes implemented in New South Wales, the Australian Capital Territory and Queensland.
SPC is expected to record a Full Year Loss in 2018 of $10 million
Cocla-Cola said its SPC fruit and tomato business is expected to record loss in FY2018 of about A$10 mln, as a result of an overall loss for Corporate, Food & Services segment.
The company says its 2018 strategic review of SPC had given the green light to go ahead with the SPC divestment.
Ms Watkins said the 2018 strategic review of SPC had concluded with a decision to proceed toward divestment.
“We believe there are many opportunities for growth in SPC, including new products and markets, further efficiency improvements, and leveraging technology and intellectual property,” Ms Watkins said.
2019 Strategic outlook
Ms Watkins said 2019 results will be impacted by container deposit schemes in Australia, and a weaker Indonesian Rupiah, anticipating another transitional year for the group.
The company said this was due to investment in the Accelerated Australian Growth Plan and Indonesian Accelerate to Transform Plan.
“Our results will also be impacted by the container deposit schemes in Australia, higher PET resin costs and a weak Indonesian Rupiah,” Ms Watkins said.
The company says it expects operational issues in Papua New Guinea, identified earlier in the year, to be resolved by 2019.
The company says it will see $50 million one-off costs in FY2018 coming from cost optimisation programs.
“We are also expecting one-off costs in 2018 of approximately $50 million, primarily from our cost optimisation programs. We expect these costs will be substantially offset by one-off gains from property divestments in 2018,” Ms Watkins said.