Coca-Cola Amatil sheds jobs
Coca-Cola Amatil will axe 260 jobs as it undertakes a $100 million cost cutting campaign.
The company said most of the jobs would be axed in 2015 as part of the drinks giant’s restructure plan.
Group managing director Alison Watkins said trading conditions continued to be challenging for the company.
But, she maintained the company’s forecast of having second half underlying earnings higher than the $316.7 million recorded in the first six months of the financial year, before significant items.
“This latest restructure, together with cost initiatives already in train, gives us a high level of confidence we will achieve our savings targets,” Watkins said in a statement on Monday.
News of the job cuts comes after Coca-Cola Amatil announced plans in August to trim $100 million in costs from its Australian business in the next three years.
The plan coincided with the company’s first half net profit for 2014/15 falling 16 per cent.
The company’s Australian beverages business had been hit by weak consumer sentiment and aggressive competition.
Its Indonesian business also suffered a drop in earnings amid increased competition and currency movements.
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But the company is pushing on with plans, announced in October and backed by its parent The Coca-Cola Company, to expand in Indonesia.
Watkins said that while the Indonesian business had increased volumes and market share, prices and profits were under pressure amid competition from rivals and cost pressures.
She said the planned $US500 million ($A540.98 million) cash injection from Coca-Cola into the company’s Indonesian business would help support the segment for the next three to four years.
“We are very focused on driving cost competitiveness through scale and less complexity, and transforming our route-to-market to cost-effectively reach a larger number of customers with a broader range of our products,” she said.
Shareholders are due to meet on February 17 to vote on the proposed equity injection from The Coca-Cola Company.
