AUS: Coca-Cola Amatil confident after FY profits rise

Coca-Cola Amatil has reported a double-digit rise in profits for 2009 and said that it expects more growth in the first half of 2010.

Net profits for the 12 months to the end of December rose by 16.4% to AUD449m (US$404.3m), compared to 2008, said Coca-Cola Amatil today (17 February). Profits rose by 11% if one-off charges in 2008 are stripped out.

Net sales rose by 7% to AUD4.56bn, driven by an 8% increase in beverage sales to AUD3.89bn. Beverage volumes rose by 4%.

"The highlights of the 2009 result included strong performances by the Indonesia & PNG and Australian Beverage businesses, the recovery in the second half by the New Zealand business and the earnings growth of more than 20% by the Food & Services Division," said Coca-Cola Amatil managing director Terry Davis.

Alcoholic drinks, which include sales of Peroni Nastro Azzurro via a tie-up with SABMiller in Australia, contributed more than 30% of full-year earnings growth in the Australian beverage business.

Coca-Cola Amatil said that it expects growth to continue and predicted a high single-digit increase in earnings in the first half of 2010.

"CCA has identified a very strong pipeline of revenue generating and cost saving capital projects to be implemented over the next three years," said Davis.

"These include the self manufacture of PET bottles in Australia and Indonesia, a material increase in beverage production capacity and the accelerated placement of cold drink coolers across the group, as well as the commissioning of the Bluetongue Brewery.

"All of these projects will drive short and medium term earnings growth,” he said.

For the full announcement, click here.

An update, including information from the company's conference call, appears here.