Coca-Cola Amatil posted a 25.3% drop in underlying profit to $375.5 million with revenue falling as the drinks manufacture restructures.
Total revenue for the full year to the end of December declined by 1.7% to $5.034 billion. Statutory net profit was $272.1 million, up 240.6%, after significant items.
The company will pay a final dividend of 22 cents a share representing a payout of 85.4% of net profit.
Managing Director Alison Watkins says earnings have come under significant pressure from structural changes in the marketplace.
“2014 has been a year of transition with solid progress made in developing and implementing a range of initiatives to stabilise earnings and return the business to growth,” she says.
In 2014, the Australian beverage business earnings declined 21.3%. The business has identified more than $100 million in cost savings to be delivered progressively over the next three years.
The Indonesia and Papua New Guinea region delivered volume growth of 17.6% and earnings of $31.9 million compared with $91.6 million last year.
The company is targeting a return to mid single-digit growth in earnings per share over the next few years with no further decline expected after 2014.
“We are confident that the combination of revenue and cost initiatives we have underway will restore the business to growth,” Ms Watkins says. “The pace of recovery will however depend on the success of revenue initiatives in Australia and Indonesian economic factors.”
Coca-Cola Amatil shares are up almost 5% to $10.47.