CCA issues trading update
Coca-Cola Amatil Limited has advised that following December trading, the largest volume and earnings month for the business, it expects to achieve around 10% growth in net profit and 7% growth in EBIT for the 2010 full year.
The company said that the impact of the colder and wetter weather across the Eastern seaboard, in particular the flooding in Queensland, would result in EBIT growth of 5 to 5.5% for the second half, below the 7 to 8% previously advised target.
However, CCA said that second half net profit growth, which benefited from lower interest and tax costs, is expected to be 9 to 10% and is ahead of target.
CCA’s Group Managing Director, Mr Terry Davis said, “Trading conditions throughout the summer period have been challenging with unseasonal weather and lower consumer demand affecting CCA’s major trading zones across Queensland, New South Wales and Victoria.
“Overall, our expectation of delivering 10% NPAT growth for the full year is a strong performance given the result also includes a $9.3 million one-off tax expense in New Zealand from the unexpected change in New Zealand tax legislation in the first half.”