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BRIEF-Coca-Cola Amatil Says Temporarily Withdrawing Company's Dividend Payout Ratio Guidance

Published 17/04/2020, 10:03 am
© Reuters.

April 17 (Reuters) - Coca-Cola (NYSE:KO) Amatil Ltd CCL.AX :

* TEMPORARILY WITHDRAWING COMPANY'S DIVIDEND PAYOUT RATIO GUIDANCE

* AS AT 31 MARCH, GROUP'S DEBT WAS ABOUT $1.8 BILLION WITH COMMITTED DEBT FACILITIES TOTALLING A$2.6 BILLION

* 1Q2020 VOLUME SHOWED LOW SINGLE DIGIT PERCENTAGE GROWTH ON 1Q2019

* FIRST TWO WEEKS OF 2Q2020 VOLUME REDUCTIONS OF UPTO 30% ON PCP

* NON-CRITICAL PROJECTS HAVE BEEN DEFERRED REDUCING CAPITAL EXPENDITURE FOR FY2020 FROM $300 MILLION TO $200 MILLION

* 1Q2020 EBIT SHOWED MID TEEN PERCENTAGE DECLINE ON 1Q2019

* WITHDRAWN EXPECTATION OF DIVIDEND FRANKING LEVELS BEING ABOVE 50% IN 2021

* WITHDRAWN PREVIOUS COMMENTARY IN RELATION TO EXPECTATION THAT THERE WILL BE NO NET NON-TRADING ITEM CHARGES IN FY2020

* FACILITATING CUSTOMERS TO SELL ONLINE THROUGH FOOD AGGREGATORS & IS WORKING WITH CUSTOMERS TO DEVELOP PAYMENT PLANS WHERE APPROPRIATE

* IMPLEMENTED A NUMBER OF COST MANAGEMENT PROGRAMS DESIGNED TO SAVE OVER $140 MILLION IN 2020

* COST CUT INITIATIVES INCLUDE INCENTIVES REDUCTION, RECRUITMENT FREEZES, REDUCE MARKETING EXPENDITURE, MINIMISING DISCRETIONARY SPEND

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