Coca-Cola Amatil announces half-yearly profits
Coca-Cola Amatil (CCA) has released its half-yearly financial results for the period ending July 1, 2011.
The results show growth of CCA’s business with profits of $234.1 million, an increase of 5.5 per cent on the half-yearly result at this time last year.
CCA’s Group Managing Director, Terry Davis said, “I believe that the operating performance in the first half has been solid given the business has had to manage external headwinds, as well as the cycling of a very strong first half result in 2010.
“The combination of devastating natural disasters in Australia and New Zealand, rapid increases in resin costs and the impact of translation on offshore earnings from the stronger Australian dollar reduced our net profit growth by around 5% for the half.
“The successful execution of our infrastructure programs in expanding manufacturing capacity and improving operational efficiency has again delivered a reduction in operating costs and further improvements in our customer servicing capability.”
The results coincide with reports today that CCA will restructure its SPC Ardmona (SPCA) business at a cost of $80.5 million.
The results show profits in CCA’s Australian business of $281 million, an increase of 3 per cent for the half-year.
Cyclone Yasi and the Queensland floods limited profits during the period, as did the soft consumer spending environment, but the business benefited from product and packaging innovations and increased brand availability, says the report.
New Zealand and Fiji
The New Zealand business saw no growth over the period, which CCA attributes to a drop in consumer confidence following the earthquake in Christchurch in February.
Over the half, the business has maintained its strong market share position and fully recovered its cost of goods sold increases, says the report.
Indonesia and PNG
CCA’s Indonesian business delivered increased earnings before interest and tax of over 20 per cent, with CCA’s share in the “modern food store channel” growing strongly.
The PNG business also delivered strong earnings consistent with increased mining investment and high commodity prices.
Alcohol, food and services
This category saw earnings growth of 1.7 per cent over the half year, driven in part by the strong performance of the CCA Services division.
The result also includes earnings arising for CCA’s new agreement with Beam Global, reported by Australian Food News March 21, 2011.
SPCA recorded an earnings decline in this category as the business continued to exit a number of unprofitable export and domestic private label activities. The stronger Australian dollar continues to impact SPCA’s competitiveness against cheap imported brands and private label categories in Australia and its earnings from international operations with export sales declining by 35% over the last 12 months, says the report.
Pacific Beverages JV
CCA’s premium beer portfolio has continued to grow. The Peroni and Bluetongue brands have performed ahead of market growth, primarily because of success of the Bluetongue brewery opened in NSW last year.