Analysis of Annual Report of Coca-Cola Amatil 2017

Accounting And Financial Management
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Contents
Introduction.................................................................................................................................................3
Brief summary of company.........................................................................................................................3
Information about the board of directors...................................................................................................4
Characteristics of board...............................................................................................................................6
Important investment or financing decisions made by Coca Cola Amatil Ltd..............................................7
Key corporate governance recommendations of ASX Corporate Governance Council...............................7
Information about the auditor and its independence.................................................................................8
Measures taken by Coca Cola Amatil Ltd to ensure ethics in its business operations.................................9
Top five investors of Coco Cola Amatil and their importance......................................................................9
Analysis of financial statements for year 2017..........................................................................................10
Liquidity Analysis...................................................................................................................................12
Efficiency Analysis..................................................................................................................................12
Leverage Analysis..................................................................................................................................13
Profitability Analysis..............................................................................................................................13
Market Ratios........................................................................................................................................13
Cash flow management.........................................................................................................................14
Overall Performance and Financial Status.............................................................................................14
Conclusion.................................................................................................................................................14
References.................................................................................................................................................15
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Introduction
The present report is developed for undertaking an analysis of annual report of Coca-Cola
Amatil of the year 2017, one of the largest bottlers of non-alcoholic ready to drink beverages
within Asia Pacific region. The analysis is carried out by examining the internal as well as
external performance of the company to determine the potential of its future growth and
development. As such, the report primarily provides a brief summary of the company including
the details about its industry sector, primary activities and recent performance. This is followed
by providing details about the company’s board of directors such as their education, experience,
remuneration, composition, expertise and other such characteristics. It then presents a discussion
relating to the investment or financing decisions made by Coco Coal Amatil Ltd during the
financial year 2017. This is followed by examining the policies of corporate conduct by the
company as per the Australian Stock Exchange (ASX) Corporate Governance Council (CGC). It
is followed by examining the audit firm of the company and the declaration of the auditor in
relation to the accounting information and its independence. The key measures that are adopted
by the Coca-Cola Amatil Ltd for ensuring that its business operations are carried out as per ethics
judgments have also been examined within the report. The top five investors of the company and
analysis of its financial statements is thereby undertaken to examine its financial performance
through examining the financial ratios such as liquidity, efficiency, leverage profitability, market
values and cash flow management.
Brief summary of company
Coco-Cola Amatil is regarded to be one of the largest bottlers and distributors of non-
alcoholic ready to drink beverages in the Asia pacific region. It is regarded to be one of the major
bottlers of Coca-Cola and carries out its operations mainly in the five countries, that are,
Australia, New Zealand, Indonesia, Fiji, Guinea and Samoa. The diverse portfolio of products of
the company includes carbonated soft drinks, spring water, sports and energy drinks, fruit juices,
flavored milk and packaged ready to eat fruit and vegetable snacks and products. The company
operates in the beverage sector and has the presence of diverse workforce for serving its millions
of customers (Coca-Cola Amatil, 2017). The company has delivered strong financial
performance in the year 2017 with growth in its net profitability as compared with the financial
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year 2016. The company has recorded growth in the underlying earnings per share by about 2.2
per cent and 85.7 per cent on a statutory basis. Also, the total dividends paid to the shareholders
have increased by about 2.2 per cent in the financial year 2017. However, the company has also
recorded a net increase in its capital expenditure to about $312.2 m as compared with $295.7 m
in the financial year 2016. Also, its trading revenue has recorded a decline of about $4.93 billion
in the year 2016 as compared with that of the year 2017 (Coca-Cola Amatil: Annual Report,
2017).
Information about the board of directors
Board of Directors details
Director’s
Name
Gender
and Age Education and Career history Remuneration details
Ilana Atlas Female
and age
62
She has done Masters of laws from
University of Sydney and Bachelor
of Jurisprudence (Honours) &
Bachelor of Laws (Honours) from
University of Western Australia.
Mrs. Atlas has great experience in
business field and she had serve as
executive as well as non-executive
director in many industry sectors.
She has worked in Westpac Banking
Corporation from year 2003 to 2010
as senior executive. For more than
22 years she has practiced as the
lawyer and also remained the
managing partner in Mallesons
Stephen Jaques. She has also been
listed on company board as director
in OneMarket Limited and ANZ
Bank.
She has $408,371 as the
remuneration fees for
year 2017 in which
$19832 has been
included for
superannuation amount.
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