AUS: Coca-Cola Amatil eyes overseas growth as home market struggles

By | 8 May 2013

CCA released a trading update yesterday

CCA released a trading update yesterday

Coca-Cola Amatil (CCA) has returned to growth in New Zealand & Fiji as continued strong performances in Indonesia helped boost a mixed first four months of the year.

In a trading update yesterday (7 May), the Sydney-based bottler said volumes increased by about 4% in New Zealand & Fiji in the four-month period. In full-year 2012 results, released in February, the region dragged profits growth.

Group MD Terry Davis called New Zealand & Fiji the “highlight” of the year so far, along with Indonesia, which posted a 10% sales and volumes jump.  

Australian beverages fared less well and the company predicted a decline in volumes and earnings for the first half of the year “due to the poorer grocery channel performance”.

Davis said CCA will up its market support and promotional activity in Australia to fight back against increased competition. “Whilst this has an impact on short-term price realisation and hence profitability, we believe that, in the medium- to long-term, it is the right course of action,” he said. 

CCA's share price dropped by about 10% after the trading update was released yesterday.

Davis said the company remains on track with plans to enter the beer market. “I have no doubt we will have a strong portfolio of international beer brands to kick off in 2014,” he said.

CCA is expected to re-enter the Australian beer market in early-2014, once the terms of the sale of its previous beer business to SABMiller has expired.

To read the trading update, click here.

Expert analysis

Indonesia Food and Drink Report Q2 2013

Business Monitor International's Indonesia Food and Drink Report provides industry professionals and strategists, corporate analysts, food and drink associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Indonesia's food and drink industry.

Sectors: Beer & cider, Company results, Soft drinks

Companies: Amatil, SABMiller

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