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Tricklar blog

Coca-Cola Amatil (CCL) : profits

Coca-Cola Amatil is aiming to restore profit growth in its Australian beverages business by throwing its weight behind Brand Coke and Mount Franklin rather than developing new products and moving into new categories.

"In aggregate they're still relatively small and it's important we don't let them become a distraction from our core business, our flagship brand Brand Coke and the many possibilities we have in categories we have already established positions in like dairy drink Barista Brothers and energy drinks Monster and Mother." CCA's underlying net profit of $416.2 million was in line with guidance for a "broadly flat" result and beat consensus forecasts around $409 million, thanks to improved momentum in Australian beverages in the December-half, especially in the few weeks before Christmas.

To achieve this goal, CCA needs to restore earnings growth in Australian beverages, where profits have fallen almost 30 per cent since 2013, by reversing a long-term slide in fizzy drink sales and protecting its share of the bottled water market.

we need to be prepared to invest over and above to build awareness. " Ms Watkins said the investment would "reinforce" successful brands such as the Monster and Mother energy drinks, the Barista Brothers flavoured dairy line, and bolster the scale and reach of the company's sales teams. Coca-Cola Amatil is seeing signs of improvement in its key Australian soft drinks and water business while strong full-year contributions from its offshore markets helped the bottler's shares gain ground. CC-Amatil managing director Alison Watkins said despite the overall weak performance from Australian beverages, there was an improvement in revenue, volume and earnings in the second half as investments in lower prices slowed declining sales. Ms Watkins said the $40 million investment in lower prices in the Australian business, announced in November, will weigh on earnings in the short-term and also flagged an impact from the recently introduced NSW container deposit scheme.

Technical Analysis Summary: 23 Feb

BULLISH:--->

  • CCL: Volume MACD Current Signal -> (1) 23 Feb: BULLISH (2) 22 Feb: BULLISH (3) 21 Feb: BULLISH
  • [BULLISH]: Coca-Cola Amatil has a medium timeframe uptrend confirmation. This was confirmed through a price breakout on the Feb 16 2018.
  • [BULLISH]: Coca-Cola Amatil current price has highlighted recent accumulation. Currently, the OBV is 2. 54197e+007.
  • CCL: PPO Current Signal -> (1) 23 Feb: BULLISH (2) 22 Feb: BULLISH (3) 21 Feb: BULLISH
  • Coca-Cola Amatil has moved below the 161. 8% level ($17. 05) [Bullish]. Look for a long limit order entry near this point. Exit price for CCL should be set @$14. 77 & Stoploss for Coca-Cola Amatil should be set at $19. 33
  • CCL: Average Directional Index Recent Trading -> (1) 23 Feb: 27. 17 (2) 22 Feb: 24. 44 (3) 21 Feb: 21. 82
  • Argo Investments managing director Jason Beddow said losses and writedowns at Bunnings' two-year-old home improvement business in the UK could dent Wesfarmers' appetite for acquisitions, especially offshore, forcing the conglomerate to focus on the low-growth Australian market.
  • CCL: Aroon Oscillator Current Signal -> (1) 23 Feb: BULLISH STRONG (2) 22 Feb: BULLISH STRONG (3) 21 Feb: BULLISH STRONG
  • [BULLISH]: Coca-Cola Amatil currently has a confirmed uptrend. Recent trading has caused the WMA 5 day average to exceed the closing price confirming the short term trend following indicator. Currently, the return on WMA5 is 1%.
  • [BULLISH]: Coca-Cola Amatil currently has a confirmed uptrend. Recent trading has caused the TMA 5 day average to exceed the closing price confirming the short term trend following indicator. Currently, the return on TMA5 is 1%.


BEARISH:--->

  • [BEARISH]: Coca-Cola Amatil is currently Overbought highlighting the potential for a short term trend reversal in the downward direction. RSI is currently overbought @81. 5370
  • [BEARISH]: Coca-Cola Amatil opening price has gapped down. Currently, the OPEN is $8. 9 (0. 8 %).

 

 

 

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