Equity Analysis /
Australia

AU : Coca-Cola Amatil - You need to pay up CCEP

    Kurt Gelsomino
    Kurt Gelsomino

    Research Analyst

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    Belina Moore
    Belina Moore

    Senior Analyst - Agriculture & Travel

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    CGS-CIMB
    22 January 2021
    Published byCGS-CIMB

    CCL’s 4Q trading and FY20 guidance was materially stronger than expected. In the 2H20, CCL delivered modest earnings growth vs the pcp. With volumes recovering as COVID restrictions ease and A$145m of cost savings targeted by FY22, we think the business is well placed in the future. We think CCL’s better than expected trading justifies a higher offer price. With the share price trading at a small premium to the offer price, clearly the market agrees.