Coca-Cola Amatil has reaffirmed its earnings guidance for the second half of 2010

Coca-Cola Amatil has reaffirmed its earnings guidance for the second half of 2010

Coca-Cola Amatil (CCA) has reaffirmed its earnings guidance for the second half of 2010 and set out plans to double its investment in the Indonesian market.

CCA said today (24 November) that it is continuing to target 7-8% EBIT growth for the second half of 2010, assuming a "normal summer trading season" for the balance of the year.

However, group managing director Terry Davis struck a cautious note: "Throughout 2010 consumers have had to contend with a steady stream of interest rate rises and substantial utility cost increases," he said. "As the further increase in interest rates in November are likely to impact on consumer sentiment and discretionary spending for the balance of the year, we remain generally cautious about the overall retail demand outlook in Australia and New Zealand."

At the firm's two-day investor presentation in Indonesia today, Davis also outlined plans to increase its investment in the country over the next three years.

"The opportunity for CCA in the Indonesian market is to participate in the growth in the consumption per capita of commercial beverages through increasing the availability of our products and by expanding our range into new products and categories," Davis said.

"To facilitate this growth, we shall be increasing our investment in Indonesia to around $100m per annum over the next three years through the expansion of our cold drink cooler fleet and our production and distribution capability. As a result, we plan to double our investment in Indonesia by the end of 2013," he added.

CCA has eight plants in Indonesia, employing around 4,000 manufacturing and distributing employees.

CCA recorded an increase in net profits for the first half of its fiscal year year.