VIV 0.00% 2.5¢ vivid technology limited

Coca Cola Amatil 2016 Annual Report "In October 2016, we...

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    Coca Cola Amatil 2016 Annual Report

    "In October 2016, we announced a second cost optimisation program, targeting at least a further $100 million of savings to be delivered over three years. Initiatives include our Richlands warehouse automation project, supply chain ‘Business Excellence’ program, merchandising outsourcing, salesforce restructure, as well as further optimisation of procurement and support services. Approximately $75 million of capex will be spent on the Richlands warehouse automation project in 2017. There is also expected to be approximately $50 million of one-off restructuring costs in 2017 associated with this program, which will be offset by the expected profit from the proposed sale and leaseback of our Richlands site."

    Capital Expenditure

    For 2017, additional capex is expected to be spent on specific initiatives within Australian Beverages, namely, our Richlands warehouse automation project resulting in Group capex of around $375 million. As a result of an additional $90 million of capex to be invested at Richlands including a new glass production line and additional capacity for dairy and juice, 2018 Group capex will be similar to 2017.

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    Sounds like Vivid will be getting some of that Coca Cola capex to deliver savings.

    “We look forward to continuing to work closely on opportunities across Amatil’s Australian
    based industrial warehousing, manufacturing and commercial sites, to maximise energy saving
    opportunities as part of this agreement.” - VIV Managing Director Samuel Marks
    Last edited by verce: 29/04/17
 
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