Coca-Cola Amatil hit by floods

Coca-Cola Amatil hit by floods

Coca-Cola Amatil's trading in the key summer period has been damaged by floods in the Australian state of Queensland, the soft drinks and beer producer has said.

Coca-Cola Amatil (CCA) said today (6 January) that it has lowered its guidance for operating profits growth in the second half of its fiscal year. The company now predicts a rise of 5% to 5.5% in earnings before interest and tax on the same period of last year, versus a previously expected 7% to 8% increase

Flooding in the northern state of Queensland has hampered operations, said the firm, which is Australia's largest soft drinks maker and has a beer business with SABMiller.

"Trading conditions throughout the summer period have been challenging with unseasonal weather and lower consumer demand affecting CCA's major trading zones across Queensland, New South Wales and Victoria," said the group's MD, Terry Davis.

Despite this, CCA said that it expects full-year net profits to rise by up to 10% on the previous year, boosted by lower tax and interest charges. Net profits rose by 12% in the first half of the year.