Coca-Cola Amatil withdraws earnings guidance
17 March 2020,
The double whammy of the bushfire crisis and now the ongoing Covid-19 outbreak has forced Coca-Cola Amatil (ASX: CCL) to withdraw its earnings guidance.
In a statement posted to the ASX CCL says measures taken by governments to slow the rate of coronavirus infection have had a "myriad of consequences" on the business.
"We will continue to support our customers and our local communities, and at this stage we expect we can continue to operate our business and avoid significant supply chain disruption, while maintaining our workforce during this challenging time," says CCL managing director Alison Watkins.
In Australia and New Zealand the company says it is witnessing strong growth in its supermarket channel as customers stock up for self-isolation or quarantine periods.
Despite growth in its supermarkets channel, CCL has witnessed declines in its On-The-Go (OTG) channel.
"We would expect OTG weakness to accelerate given consumers' likely preference for staying at home as well as the widespread cancellation of major sporting, entertainment and cultural events," says CCL.
Updated at 11:22am AEDT on 17 March 2020.