Today (18 February), Coca-Cola Amatil reported its full-year results, revealing an 83% drop in net profits as its packaged food unit, SPC Ardmona, suffered write-downs. Here, just-drinks takes a closer look at the Sydney-based company’s performance in the 12-month period by region and sector.
Australia
The country delivered a 9.3% fall in beverage earnings because of weakness in the grocery channel, which CCA said was impacted by aggressive competitor pricing. The non-grocery channel delivered volumes and earnings growth.
Mount Franklin Lightly Sparkling volumes increased by about 50%, while overall Mount Franklin brand volumes grew by about 9%. Pump bottled water grew its volumes by 10% and frozen beverage volumes climbed by about 30%.
CCA said the overall performance of the CSD category was “disappointing”, but noted that mini-can volumes increased by about 70% and Coke Zero grew its share of the cola category.
New Zealand and Fiji
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By GlobalDataThe New Zealand business enjoyed a “solid recovery” last year, CCA said, after a tough 2012.
The relaunch of Lift Plus as a “price-fighter” energy drink, helped drive energy drink volumes growth of 11%. Keri Pulpy was launched in February, driving total Keri juice growth of about 11%.
Meanwhile, the Fiji business delivered strong volumes and earnings growth as it cycled the impact of major floods in 2012 and continues to benefit from the strong growth of Minute Maid Pulpy, CCA said.
Indonesia
Volumes in the country increased by about 10% driven by the launch of a number of new products and the “rapid” growth of the water business, CCA said. “Significant” wage and fuel inflation in the second half, however, limited earnings growth.
Strong growth in one-way-packs in the general trade more than offset the impact of the continuing decline in lower value returnable glass bottles, CCA said. Returnable glass bottles now represent only 13% of Indonesia’s pack mix.
The Minute Maid brand continued to grow strongly, supported by new product launches including Minute Maid Aloe Vera and Minute Maid Nutriboost, CCA said. Earnings were impacted by significant wage and fuel inflation, a direct result of an approximate 35% increase in minimum wages and the over 30% reduction in fuel subsidies, CCA said.
In local currency, the company’s revenue per unit case reduced by around 2% from last year.
Papua New Guinea
The PNG business experienced a “significant” decline in volumes and earnings due to a slowdown in economic activity caused by falling commodity prices, reduced mining activity, increased competition and increased unemployment levels, CCA said.
Alcohol
CCA’s Beam Inc business delivered “solid” earnings growth despite the impact of a soft spirits market on volumes, the company said. CCA recently extended its Beam partnership to 2023.
The Jim Beam brand launched a number of super premium products, including Jim Beam Distillers Masterpiece and Jim Beam Signature Craft.
