Imagine that PGH currently makes circa $50 Million Profit per...

Imagine that PGH currently makes circa $50 Million Profit per year and has a current Capex budget of $125Million per year. This budget is used to build new factories and replace old aging factories. The new factories are much faster with modern machine and often less staff required. Because of the reduce cost you suddenly win contracts. I remember when the new Horsely park bottling factory capacity was said to almost be fully booked even before production started on the new factory.

Now what happens when you no longer need to increase capacity and build new factories. Now you move to running them instead of building them. What happens if you only drop you capex budget by $50Million per year to $75Million instead. I am no accountant but I am sure that most of this will end up in profit.
This alone can double the profit of the business. Obviously if you want to tell people you are not making much money you spend on capex to look poor so that in the future you have a better business I think to some degree this is what has been happening over the last 5 years.