Morgan BellCoca-Cola Amatil New Wonder Drinks
January 8th 2007 10:00
Coca-Cola Amatil is launching two exciting new drinks: Mother, an energy drink, and Enviga, which can help losing weight. Coca-Cola Amatil is a remarkable business whose financials I expose below. Stay with me for more.
The news today, 8 January 2007, is that “Coca-Cola Amatil is planning a pincer movement on the $2 billion carbonated soft drinks market with the unveiling today of a new energy drink and a controversial "slimming" tea slated for launch later this year.”
“Both products fall into what Coca-Cola's marketers are calling the "wellness" area of soft drinks with the first product, Mother, claiming to be a natural juice-based energy drink with, among other ingredients, a potent Amazonian berry, acai.”
“A carbonated green tea, Enviga - aimed at young women - is due to launch in July and will market itself with the claim that drinking it can help burn calories.”
“Coca-Cola will pump millions of dollars into the launch of both products in the hope that it can take advantage of the growth in both categories and reduce its reliance on high-sugar drinks.”
“The energy drink segment, which is dominated by Frucor's V and Red Bull, is worth $151 million and is growing by 47 per cent a year. Energy is the fastest-growing category in soft drinks and account for 22 per cent of total drink sales, but CCA has been lagging V and Red Bull in the chase for the youth demographic.”
“Coke is spending at least $10 million marketing Mother to young men as an all-natural drink with attitude; the branding on the cans is gothic and reminiscent of a tattoo.”
“Mother will be available at all 7-11 convenience stores from today. Advertising begins on January 12.”
This news was published in the online version of The Sydney Morning Herald under the title “Mother of energy drink battles is on” and was written by Julian Lee and Vanda Carson.
Any company which displays the name Coca-Cola on its own name must be a great company. Such is, in fact, the case of Coca-Cola Amatil (ASX: CCL), the Australian and South-East Asia drinks maker.
A look on its financial figures shows a talent to increase Earnings, which by 2000 were 19.7 cents and by 12/2005 were 43.1 cents, a compound annual increase of 17 per cent.
CCL’s current Revenues (12/2005) are $4,149 million and Net Profit $320.5 million, on a margin of 7.7 per cent.
Current Return on Capital is 13 per cent and on Equity is 22.5 per cent.
CCL’s Long Term Debt is high at $1,749 million, representing 55 per cent of capital. The Interest bill is $151.1 million. CCL holds Cash Assets of $315 million.
CCL paid on 2005 a dividend of 31.5 cents.
Coca-Cola Amatil’s current P/E based on the price of $7.69 and on expected EPS for 2006 of 41.8 cents, is 18.4 times, which looks high in comparison with a sector multiple of 15.5 times.
Price to Book is also high at 4 times while the sector is 1.2 times.
End
The news today, 8 January 2007, is that “Coca-Cola Amatil is planning a pincer movement on the $2 billion carbonated soft drinks market with the unveiling today of a new energy drink and a controversial "slimming" tea slated for launch later this year.”
“Both products fall into what Coca-Cola's marketers are calling the "wellness" area of soft drinks with the first product, Mother, claiming to be a natural juice-based energy drink with, among other ingredients, a potent Amazonian berry, acai.”
“A carbonated green tea, Enviga - aimed at young women - is due to launch in July and will market itself with the claim that drinking it can help burn calories.”
“Coca-Cola will pump millions of dollars into the launch of both products in the hope that it can take advantage of the growth in both categories and reduce its reliance on high-sugar drinks.”
“The energy drink segment, which is dominated by Frucor's V and Red Bull, is worth $151 million and is growing by 47 per cent a year. Energy is the fastest-growing category in soft drinks and account for 22 per cent of total drink sales, but CCA has been lagging V and Red Bull in the chase for the youth demographic.”
“Coke is spending at least $10 million marketing Mother to young men as an all-natural drink with attitude; the branding on the cans is gothic and reminiscent of a tattoo.”
“Mother will be available at all 7-11 convenience stores from today. Advertising begins on January 12.”
This news was published in the online version of The Sydney Morning Herald under the title “Mother of energy drink battles is on” and was written by Julian Lee and Vanda Carson.
Any company which displays the name Coca-Cola on its own name must be a great company. Such is, in fact, the case of Coca-Cola Amatil (ASX: CCL), the Australian and South-East Asia drinks maker.
A look on its financial figures shows a talent to increase Earnings, which by 2000 were 19.7 cents and by 12/2005 were 43.1 cents, a compound annual increase of 17 per cent.
CCL’s current Revenues (12/2005) are $4,149 million and Net Profit $320.5 million, on a margin of 7.7 per cent.
Current Return on Capital is 13 per cent and on Equity is 22.5 per cent.
CCL’s Long Term Debt is high at $1,749 million, representing 55 per cent of capital. The Interest bill is $151.1 million. CCL holds Cash Assets of $315 million.
CCL paid on 2005 a dividend of 31.5 cents.
Coca-Cola Amatil’s current P/E based on the price of $7.69 and on expected EPS for 2006 of 41.8 cents, is 18.4 times, which looks high in comparison with a sector multiple of 15.5 times.
Price to Book is also high at 4 times while the sector is 1.2 times.
End
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