Aust business drags on Coca-Cola Amatil
Coca-Cola Amatil has recorded a flat first half profit, partly due to weaker earnings from its core Australian business.
The beverages supplier made a net profit of $183.9 million for the six months to June 30, up less than one per cent from $182.3 million a year ago.
The result was weighed down by a six per cent slide in earnings from the company’s non-alcoholic beverages business in Australia, which is by far its largest division, due to weak trading conditions.
CCA group managing director Alison Watkins said the first half result was consistent with the company’s internal plans and previously provided guidance.
“The results were achieved despite trading and economic conditions that were more challenging than we had expected in Australia and Indonesia,” Watkins said on Friday.
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“Concrete progress has been made in implementing strategies to strengthen the market leadership position of the company across our markets, which we believe will enable us to return to growth over the next few years and generate long-term shareholder value.”
CCA’s earnings from its non-alcoholic beverages business in Australia fell 6.1 per cent to $222.2 million in a challenging trading market which saw the overall carbonated soft drink market continue to decline.
CCA’s non-alcoholic beverages business in Indonesia generated a 46.4 per cent increase in earnings to $22.4 million.
But slower economic growth in Indonesia had affected overall consumer purchasing power, so volume growth for the beverages market was tracking below expectations.
Shares in CCA were 55 cents, or 6.3 per cent, higher at $9.08 at 1023 AEST.
