AUS: Coca-Cola Amatil profit jumps in H1
Coca-Cola Amatil has seen its net profit leap by 22% in the first half of this year, driven by growth in its Australian and New Zealand beverage businesses.
Profit rose to a record A$172m (US$149m) for the six months to the end of June, also boosted by the sale of the drinks group's South Korean business, Coca-Cola Amatil (CCA) announced today (20 August).
Managing director Terry Davis praised his firm's resilience in the face of "tougher trading conditions". Total revenue dropped 11% , but revenue from continuing operations crept up 0.5% to A$1.86bn.
Cost savings schemes, higher prices and a strong performance in alcoholic drinks, which contributed to a fifth of beverage growth in Australia, drove the performance, Davis said.
The Australia division increased beverage revenues per case by 4%, offsetting damage to volumes in the first quarter. "The Australian business delivered 10% EBIT growth for the half, despite being impacted by poor weather and heavy discounting by our major competitor in the first quarter," said Davis.
A 15% rise in volumes for the Powerade brand in neighbouring New Zealand helped CCA to growth there, despite the country's "softening economy". New versions of Powerade, Edge and Recovery, drove the brand's sales.
Currency fluctuations sent revenue per case down 5% in Indonesia, but the firm said volumes rose 4.6%, despite increased prices for consumer staples such as rice and cooking oil.
Going forward, CCA maintained full-year earnings guidance, but said it would issue a further update in October.
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