Warren Buffett is renowned for promoting US-listed company Coca-Cola as an inevitable stock that will essentially increase profits forever, but falling sales...

Intelligent Investor

Independent Financial Research

Warren Buffett is renowned for promoting US-listed company Coca-Cola as an inevitable stock that will essentially increase profits forever, but falling sales volumes in the US and the recent interim result from Coca-Cola Amatil (Australia's distributor of Coke) suggest otherwise. Coca-Cola Amatil's share price has fallen to levels not seen since the GFC following a terrible interim result. In Australia revenue fell 0.5% to $1,364m compared to the same period last year but, with slightly higher volumes failing to offset lower prices, operating profit slumped 14.1% to $227m. New chief Alison Watkins will announce further details on her strategic review in due course and you can expect a slight improvement in earnings in the second half, but that will still mean a big fall in earnings from last year. Unless the share price falls further we'll be in no rush to get involved while the company's competitive position deteriorates. (VIEW LINK)


Intelligent Investor
Intelligent Investor
Independent Financial Research

Intelligent Investor is an independent financial research service with a 14-year history of beating the market. Our value investing approach empowers Australians to make more informed decisions to build their long-term wealth. We off structural...

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