(RTTNews) - Coca-Cola Amatil (CCL.AX), in its trading update, reported Tuesday that Group Volume in April declined by approximately 33 percent compared to last year, with COVID-19 restrictions felt across all its markets throughout the peak Easter and Ramadan trading periods.
With the gradual lifting of COVID-19 restrictions across each of its markets, there are signs of some improvement in trading conditions. Trading in the first three weeks of May has seen Volume decline by approximately 26 percent.
Beverages sector as a whole was negatively affected across all of Amatil's markets.
Margin decline was more pronounced given shifts in channel and portfolio mix, particularly in Australia.
The company noted that adverse impact on earnings before interest and tax or EBIT and cashflow was partially mitigated by tight cost management and reduced capital expenditure.
Group Managing Director Alison Watkins said, "Whilst revenue since the start of April has broadly declined in line with Volume, the impact on our Group margin percentages has been much greater, reflecting marked shifts in channel and package mix, particularly in Australia. This adverse impact has been compounded by the loss of scale in Indonesia resulting in a pronounced impact on EBIT..."
Looking ahead, the company noted that the economic recovery will take time and uncertainty remains. The company anticipates to have a clearer view that can be shared at its 2020 half year results in August.
In Australia, Coca-Cola Amatil shares were trading at A$8.78, down 2.01 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
