22, February 2018
Coke’s glass is half full, just ask Alison Watkins


Daniel Mueller, portfolio manager of Vertium Asset ­Management, said the result showed an improvement in ­operational momentum in the second half, albeit off a low base in the first half.

“Australia remains challenged in the key sparkling ­beverage category. While ­Indonesian EBIT growth partly offset a poor Australian result, this business can be volatile as seen in its revenue decline for the year.

“Relying on it to be the driver of positive earnings growth is fraught with risk.

“There is little evidence that investment in Australian beverages has generated acceptable returns for shareholders,” Mr Mueller said.

“Return on capital employed declined by 2.6 percentage points during the year. I’m ­sceptical as to whether the $40m pull forward in reinvestment of cost savings in 2018 will deliver any tangible net benefit.”

Read full article in The Australian

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