The good news in Coca-Cola Amatil’s third-quarter trading update is that sales of its carbonated beverages to Australian supermarkets have returned to growth and regained some market share. The bad news is that this has been achieved through price cuts in the face of continued ‘aggressive competitor pricing activity’. The company also complained that it hadn’t seen ‘the expected post-election uplift in consumer spending’.
Overall, the bad news outweighed the good, and the company downgraded its full-year guidance to an earnings before interest and tax decline of 5–7%, from 0–4% at the interim result. The stock fell 5% on Monday following the announcement.