Coca-Cola Amatil’s record profits disappoint expectations
Despite posting record earnings, with a net income increase of 16%, up to $449 million, Australian company Coca-Cola Amatil’s share price dropped today. Stock market experts described Coca-Cola Amatil’s results as ‘solid’, but not good enough to justify its share price.
Developing markets Indonesia and Papua New Guinea posted revenue growth of almost 22%, and the Food & Services Division (including SPC Aardmona) reported earnings growth of over 20%.
Strong performance by the Australian beverage side of the business, particularly alcoholic beverages and Mother energy drink, contributed to the company’s record result. Sales of Jim Beam alcoholic ready-to-drink beverages were also high.
Coca-Cola’s joint venture with SABMiller, Pacific Beverages JV, made a small loss, but the company hopes that investment in building its brands and extending production facilities will lead to increased profits in years to come. Pacific Beverages produces Peroni Nastro Azzurro, Miller Genuine Draft, Miller Chill and Pilsner Urquell as well as Australian brands Bluetongue and Bondi Blonde.
CCA’s Group Managing Director, Mr Terry Davis said, “CCA has continued its strong performance in what were challenging trading conditions. The significant investments made by the Company over the last three years in capacity, operational capability and cold drink coolers, as well as successful new product and package innovation, continues to distinguish the performance of CCA from its food and beverage peer group.”