AUS: Coca-Cola Amatil first-half net profits leap

• H1 net profits leap 60.9% to AUD247.2m (U$258m)
• Net sales rise 8.9% to AUD2.4bn 
• Operating profits (EBIT) up 4.1% to AUD402.1m 
• Indonesia, Papa New Guinea expected to deliver good volume growth in H2

A strong performance in Indonesia and Papa New Guinea, coupled with improved trading in Australia, has helped Coca-Cola Amatil (CCA) report a strong set of H1 results.

Net profits leapt by 60.9% to AUD247.2m (US$258m) in the six months to the end of June, the North Sydney-based group announced today (22 August). Sales were up 8.9% to AUD2.4bn. 

Operating profits rose 4.1% to AUD402.1m in the period. 

The group pointed to "improved trading" in Q2 in its domestic market of Australia, as volumes grew 3.1%. This came despite "continued poor consumer spending" in the country, it said. 

Strong growth in Indonesia and Papa New Guinea, where volumes grew 12.9% in H1, was helped by "ongoing investments" in its manufacturing capacity in the region, the group said. 

"The productivity improvements being made right across the business have provided a good earnings buffer during more difficult trading conditions," said CCA group MD Terry Davis. 

In June, CCA announced it is buying the Foster's Group's soft drinks brands, as part of its rights acquired from the fallout of SABMiller's takeover last year. It also signed multi-year agreements in May with  Grupo Modelo, Carlsberg and Molson Coors to start distribution of a “large portfolio” of their brands this year. 

CCA is also preparing to re-enter the premium beer market in Australia from December 2013, by forming a JV with Casella Wines. 

Looking ahead, Davis said he expected Indonesia and PNG to deliver "good volume growth" in the second half of the year.

He added: "CCAwill continue to invest ahead of the curve in production capacity and cold drink coolers while strengthening our operational capability with a  number of new products and packs to be launched over the next 12 months, supported by strong marketing programmes from The Coca-Cola Company." 

Shares in CCA were today up 0.43% at AUD13.92. 

To view the company's full statement, click here.