CC-Amatil latest results no fizzer
CC-Amatil (CCA) announced its results for the first half of its 2016 financial year late last week, showing Australians are more interested in still beverages than soft drinks.
CCA, the Australian bottler of Coca-Cola products, achieved earnings before interest and tax of AUD $326.9 million. This is an increase of 3.2 per cent on its results for the first half of 2015.
Managing Director of CCA, Alison Watkins, said within Australia, volumes in still beverages increased by 9.3 per cent due to strong performances in water, energy and dairy.
“This was the result of innovation, and investment across the categories that commenced in 2015 including the introduction of FUZE Tea and Monster Energy and the new Mount Franklin marketing campaign,” Watkins said.
Watkins stated sales in still beverages helped offset a decline in sparkling beverage sales.
“Consumer tastes and trends in Australia are continuing to evolve and our focus over the last two years has been on rebalancing our full portfolio. We are moving to meet consumer demands with a greater focus on portion size and product reformulations in Sparkling and increased investment in Stills,” Watkins said.
Whilst still beverages helped boost CCA’s profits, its fruit packaging division, SPC, experienced “modest loss” in both volumes and revenue.
CCA however said it was seeing “some encouraging signs” regarding its snacking fruit and tomato products.
Indonesia and Papua New Guinea growth
CCA reported a 65.2 per cent growth in earnings before interest and taxes within Indonesia and Papua New Guinea when compared to its 2015 results for the same corresponding period.
“Our Indonesian business performed strongly in the first half and despite local economic conditions remaining soft, we are pleased to see the improvements made in our route-to-market are delivery results,” Watkins said.