Coca Cola Amatil reveals 5.6 % net profit growth in latest quarter
Coca Cola Amatil’s latest shareholder report has revealed improved trading in the second quarter of 2012, resulting in a 5.6 % growth in net profit to $247.1 Million. In what is said to be a ‘difficult trading season,’ the company also managed 3.1 % volume growth and an earnings before interest tax (EBIT) growth of 4.9 % in its Australian markets.
CCA’s report showed that Australia’s EBIT growth to $294.8 Million was due to significant ‘momentum turn’ in spending habits during the second quarter, as well as ‘effective promotional strategies’ in May and June 2012.
The report also detailed strong growth in Indonesian and PNG Businesses with their EBIT 19.3 %. Attributed to their ‘significant cold drink cooler footprint’ in the region, Coca Cola Amatil said that the 12.9 % volume growth had ‘positioned them well for future growth.’
The statistics come as CCA rapidly continues to expand in Indonesia, now owning over 100 sales and distribution centres and around 235,000 cold drink coolers. CCA’s growth in region has also provided 8,000 jobs within the company.
Although still combating what CCA regards as ‘weak consumer spending’ in Australia, CCA has indicated that its capital expenditure is expected to increase by around $100 Million to $470 Million in late 2012. It also expects to increase capital expenditure in Indonesia and PNG to $140 Million by the same time.
The trading outlook comes at a time when Coca Cola Amatil intends to re-enter the Australian beer market in late 2013. In a joint venture with Casella, CCA will have the opportunity to sell, manufacture and distribute beer in Australia when their restraint expires on 16 December, 2013.