CC Amatil books 22% interim net profit growth

Beverage maker Coca Cola Amatil Ltd (CCA) has said it is on track for high single digit second half earnings growth after posting a 22.0% lift in its interim profit.

The drinks maker booked a $171.9 million first half profit for the period to June 30 compared to the $140.9 million result it achieved in 2007.

The firm said it would maintain its guidance of high single digit earnings before interest and tax growth for the second half.

In May it gave guidance of high single digit growth for both the first half and the full year.

On a continuing operations basis, the interim net profit of $171.9 million was 10.4% better than last year’s $155.7 million.

“The trading conditions in the first half of 2008 were more difficult than in 2007,” the company said.

“CCA maintains its guidance of high single-digit EBIT growth for the second half of 2008 with a target of around 7% EBIT growth, before significant items and on a continuing operations basis.”

The drinks maker said it’s expected the full year increase in cost of goods sold per unit case to be just over 3% per unit case on a constant currency basis.

CCA’s group managing director Terry Davis said the manufacturer delivered a strong result despite tougher trading conditions.

The Australian and New Zealand beverage businesses had performed well while the Indonesian operations continued to grow, he said.

“The result has been driven by well balanced revenue and mix management and tight cost control programs across the business,” he said.

“In addition, CCA continues to benefit from efficiency gains from its capital spending program while the manufacture and distribution of alcoholic beverages contributed nearly 20% of the Australian beverage business growth.”

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