Coca-Cola Amatil has announced that it will be focusing on its Australian operations to encourage sustainable earnings growth and deliver strong shareholder returns as part the first phase of its strategic review.
The company announced in April this year that it will be reviewing all of its operations following a 15 percent fall in first half earnings due to challenges in its Australian operations and higher costs in Indonesia, The Mercury reports.
Group managing director and former Grain Corp boss, Alison Watkins said that there are opportunities across the business to raise revenue and improve productivity, as well as reduce costs.
"Our main focus at this stage is Australia, as the most material contributor of earnings to our group," said Watkins.
"In response to the current challenges, we are reviewing our longer-term growth and investment plans for Indonesia with our partner, The Coca-Cola Company,"
"We remain committed to investing for growth in Indonesia, but we must do this with a view to delivering solid and sustainable returns."
According to Watkins, the company needs a stronger portfolio of products outside of its mainstay carbonated beverage category, and to improve its share of the sports, energy and water categories.
As announced earlier this week, CCA’s managing director for Australian beverages John Murphy will leave the company at the end of June, having agreed there are no suitable positions for him in the restructured organisation.
A more detailed list of CAA’s priorities and objectives will be announced when the company releases its financial results for the first half of 2014 in August.