Coca-Cola Amatil reaffirms guidance for 2010
Coca-Cola Amatil (CCA) said at its AGM trading update that business remains in a “strong” financial position, driven by revenue management and efficiency gains. The Australian beverage company said last week (14 May) that it expects to deliver high single digit growth in both earnings before interest and tax and net profit after tax for the first half of 2010.
In a trading update for the six months to the end of June, CCA said its Australian beverage business had made a solid start to the year and is expected to achieve positive volume growth.
CCA’s group managing director, Terry Davis said: “Cycling the very strong first half of 2009 in Australia was always going to be challenging. In the year to date, I am pleased that the strength of our business model in effectively balancing pricing, volume growth and market share in each of our markets has continued to serve the business well.
“We have improved our market position in each of our territories and the business remains in a strong financial position.”
Despite this, Davis said that CCA’s domestic business continues to experience a “noticeable shift” in consumer behaviour as demand for premium beverages in restaurants and cafes remained “subdued”.
Pacific Beverages, a joint-venture company with SABMiller, continued to invest in building its brands and growing its market share of the Australian premium alcoholic beverages market. Its premium beer portfolio continued to grow volumes and market share and now accounts for around 10% of the premium beer market in Australia.
CCA said it will continue to focus on executing its organic growth strategy.
“We have a strong pipeline of high returning capital projects that are expected to deliver efficiency and revenue gains across the business for the next few years,” Davis said. “We will also continue to up-weight our investment in Indonesia, and with the Bluetongue Brewery about to be commissioned, we will have the manufacturing platform to take our beer business to the next level.”
The company will release a trading outlook for the second half of 2010 later this year in August.