Schweppes Australia fizzes in Q2

Schweppes Australia fizzes in Q2

Schweppes Australia has powered to strong second quarter sales and reversed operating losses, according to Japanese parent group Asahi.

Schweppes Australia's net sales, converted into yen currency, leapt by 155% to JPY31.4bn (US$365.6m) for the three months to the end of June, Asahi said earlier this week.

The figures suggest that Schweppes Australia has made strong progress since Asahi completed its acquisition of the business from Cadbury for AUD1.18bn (US$1.1bn) in the second quarter of 2009. The unit suffered operating losses of JPY0.4bn in that quarter. But, the division rebounded to post operating profits of JPY0.8bn for the second quarter of this year.

Sales momentum is expected to slow over the second half, but Asahi has forecast that full-year sales will still be almost 50% higher for the division's full-year. Sales are expected to hit JPY68bn, up from JPY46.6bn in 2009.

Schweppes operating profits, meanwhile, are set to increase by 78% in 2010, to JPY4.4bn from JPY2.4bn in 2009.
Earlier this week, Asahi said that falling demand for alcoholic drinks in Japan has caused a dip in half-year group sales, with profits down by almost a third.   

All of Japan's big four drinks companies are seeking to expand overseas in order to reduce their reliance on domestic demand.