• FY net profits up 5% to AUD393.3m (US$280m)
  • Net sales climb 3% to AUD5.1bn
  • Operating profits (EBIT) edge up 1% to AUD660m
CCA said its Australian beverages have stablised

CCA said its Australian beverages have stablised

Coca-Cola Amatil (CCA) has said its cost-cutting plan is ahead of schedule after the company returned its Australian soft drinks business to full-year growth.

CCA's chief executive Alison Watkins today praised the three-year, AUD100m (US$71m) restructuring she implemented in October 2014, saying it has helped stabilise the Australian Beverages unit. However, she said challenging conditions remain in Australia, and for its Indonesian unit, in which the company has sold a minority stake for US$500m to The Coca-Cola Co.

CCA says it will use Coke Life technology on other brands. Click here to read more

"Stabilising our core Australian Beverages business is an important achievement," Watkins said. "While the Indonesian economy has been difficult we are working well with Coca-Cola to realise its long-term potential."

CCA has been battling with a declining Australian beverage market for a number of years and Watkins launched the cost-savings programme that included the axing of hundreds of jobs.

Today's results showed that operating profits (EBIT) for CCA's non-alcohol Australian beverages increased 0.2% in the 12 months to AUD463.8m after a 21% decline last year. All of CCA's units found EBIT growth except for Corporate, Food & Services, which accounts for just 2% of overall EBIT.

The performance saw CCA's group net profits jump by 44% to AUD393.3m, however the increase was affected by costs in 2014 related to the cost-cutting measures. Discounting those costs, net profits were up 5%.

Sales were up by 3% to AUD5.1bn after a 2% fall the year before.

In other units, Indonesia & Papua New Guinea's EBIT increased 10% with Indonesia facing headwinds stemming from a slowing economy, impacting volume and profitability, CCA said.

Alcohol & Coffee earnings grew 32%, continuing the momentum from the first half, the company added. CCA in June signed a new ten-year distribution deal for Beam Suntory's portfolio in Australia and in August expanded the agreement to include New Zealand.

Investors reacted favourably to CCA's announcement, with the company's shares up 4.1% at close of trading today.

To read the company's full results, click here.