Coca-Cola Amatil’s (ASX:CCL) group MD Terry Davis has announced his intention to retire from the beverage company in 2014, ending months of speculation about his future.
Davis will stay on with the group until 31 August 2014, having already spent 11 years with the group. Coca-Cola Amatil (CCA) chairman, David Genski, said the board will embark on an internal and external recruitment drive over coming months to find Davis’ replacement. He added the next 18 months were crucial as the company further expands its alcoholic beverage strategy and accelerates plans for the growth of its Indonesian operations.
“In his 11 years so far as group managing director, Terry has made a significant and lasting contribution in transforming CCA into a world-class, premium multi-beverage business,” Genski said.
He pointed out the company has seen its market capitalisation increase from $3.5bn to $11.4bn under Davis’ reign, while return on capital has lifted from seven per cent in 2001 to 24 per cent today, generating shareholder returns of nearly 400 per cent.
“The board will seek to ensure an orderly transition during 2014 to the new group managing director and I very much look forward to working with Terry over the next 18 months.”
In its most recent financial results, CCA reported half-yearly total revenue of $5.1bn, up 6.3 per cent year-on-year, with earning before interest, tax and significant items up 3.1 per cent to $895.5m. EBIT including significant items was down 12.6 per cent to $761m. Net profits were also down 22.3 per cent to $459.9m.