CCA released its full-year results today

CCA released its full-year results today

Today (19 February), Coca-Cola Amatil reported its full-year results, revealing a 22% drop in net profits as its packaged food unit SPC Ardmona suffered costs and write-downs. Here just-drinks takes a closer look at the Sydney-based CCA's performance in the 12-month period by region and sector.

Soft drinks

Australia

CCA's Australian business delivered volumes and EBIT growth of 3.3% despite weak consumer spending and bad weather in the first quarter. Net sales increased by 5.1%, but sparkling beverages promotions by competitors in the grocery channel throughout the second half meant increased investment in promotional activity, CCA said.

Sparkling beverage market share increased in the second half. In 2012, the company commissioned five PET bottle production lines and a PET bottle preform and closure injection moulding plant. CCA’s cooler investment continues to be an important driver of cold drink market share gains in Australia, the company said. 

New Zealand & Fiji

New Zealand delivered a “disappointing” result with a decline in volumes and earnings, CCA said without giving details. Consumer confidence was “soft” while a cold summer also made trading conditions difficult. However, the energy drink category performed well in the country, with volumes of Mother up by 5%. The Christchurch PET bottle production line was commissioned in January and Auckland’s second PET bottle production line commenced operation in May. The Fiji business, which represents less than 1% of group earnings, delivered “improved volumes and earnings”, CCA said. Overall, New Zealand & Fiji posted an 11.8% drop in operating profits (EBIT).

Indonesia & PNG

A rise in volumes of 10.3% and EBIT growth of 16.8% was driven by increased demand for commercial ready-to-drink beverages, brand and package innovation and the continued strong growth of Minute Maid Pulpy juice and the sparkling beverage category, CCA said. Company boss Terry Davis called Indonesia & Papua New Guinea “the standout performer” and predicted growth to continue, with revenue expected to exceed AUS1bn for the first time in 2013.

Alcohol, Food & Services (all regions) 

The category was impacted by problems with CCA's food business but still increased earnings by 2.0% due to a “solid” result from spirits and alcoholic ready-to-drink beverages, CCA said. Earnings from Beam brands were driven by the success of Canadian Club, the introduction of new flavour extensions in the Beam range (Jim Beam Honey, Black Cherry and Devil’s Cut) with Beam’s value share of the spirits category increasing by close to 1 percentage point, CCA said. Canadian Club delivered volumes growth of 30% driven by the strong growth in ready-to-drink Canadian Club & dry, the launch of draught Canadian Club & dry and a marketing campaign. In 2011, CCA signed a ten-year deal with Beam forerunner Fortune Brands to continue with the sale and distribution of Beam's global products.