Hello Saragian ....
And thank you , and I don’t know if it is a case of ‘buy the break’, but I bought a few even though it looks like it will close under your technical level and Coca Cola is not on my beverage list .
(It seems my portfolio has reacted strongly against the notion of social distancing)
It was on the basis of;
-your chart reminding me of this company and me interpreting it - rightly or wrongly as ‘hopeful’,
-the feeling people like to imbibe booze and soft drinks of life, even in hard economic times and coca cola as such a wide range of products https://www.ccamatil.com/en/our-businesses-and-brands/our-brands..... including Mojo - a word for magic, joy and apparently kombucha too.
Coca-Cola Amatil’s COVID-19 Trading Update, Chairman Says Company “Well Positioned For The Future”
After a particularly significant 2019 marking the completion of a two-year transition period, strengthened customer focus, simplified operating model and a strong performance that provide a solid foundation- the brand has benefited from this business transformation effort.
However, the COVID-19 volatility across channels and markets forced the Company to trade through tighter COVID-19 lockdown restrictions, customers remaining closed or operating at significantly reduced capacity, whilst simultaneously cycling the traditionally peak Easter and Ramadan trading periods catalysing unprecedented disruption to trade.
In Spite of these difficulties, CCL’s business exhibited strength and the capability to partially alleviate the unfavourable effect of disruptions via its flexible ways to market, varied channels, meticulous financial management and the vigour of its brands. Moreover, with lockdown restrictions commencing to ease and regional economies to begin a lengthy recovery, there are indications of moderate progress in trading conditions.
In Australia for April 2020-
Amatil experienced an ~30% decline in volume in the Non-Alcoholic Ready to Drink relative April 2019
OTG Volume and Convenience and Petroleum Volume was down ~55% and 20%, respectively, on the pcp
In the Grocery channel, Volume declined approximately 10% versus April 2019 driven by panic buying
The Alcohol business was down with Volume down ~35% on the pcp reflecting On-Premises closure and soft Easter and ANZAC Day trading
But things seem to streamline in May with COVID-19 restrictions starting to lift. CCL has already noted modest improvement with volume decline rates reducing in the first three weeks of May to ~20% down on the pcp. The Company has commenced repositioning team members back into the OTG channel (they were temporarily redeployed into the Grocery channel in mid-March).
In a Board update, CCL intimated that Richard Conway has been appointed as Group Company Secretary, effective 29 May 2020, following the resignation of Jane Bowd.
CCL quoted $8.81 at market close on 26 May 2020 and was the 5th biggest decliner of the day in the S&P/ ASX200 list, down by 1.56%. On 27 May 2020, CCL was trading at $8.81, down by 0.113% (at AEST 12:25 PM).
As CCL’s Group MD Alison Watkins rightly puts- “while you can’t change the direction of the wind, you can adjust your sails”, it will be interesting to watch the beverage industry respond to the challenges of COVID-19, a situation that has been a testament to the strength of the industry, and witness it unveil its strategy to survive and win in a post COVID-19 world.
