Coca Cola Amatil (CCA) has continued its trend upwards, reporting growth of almost 6 per cent in the second quarter of this year.
The beverage giant’s growth in net profit in the period was $247.1 million, in what many have labelled a ‘difficult trading season’.
Despite the tough market conditions, CCA also managed more than three per cent volume growth and earnings before interest tax (ABIT) was up by almost five per cent in its Australian market.
CCA’s shareholder report showed that Australia’s EBIT growth to $294.8 million was the result of significant ‘momentum turn’ in spending habits during the second quarter, as well as ‘effective promotional strategies’ in May and June 2012.
The iconic beverage maker announced last month that following on from the unprecedented success of its ‘Share A Coke’ campaign last year, it would be expanding on the promotion this summer by embracing the nostalgia of music.
Joining with Facebook and Spotify, CCA will allow consumers to unlock top music hits from the year listed on individual bottles using a QR code and share the playlist with friends.
It also revealed in August that it would be increasing the size of its glass bottles and adding a resealable lid to appeal to the consumer demand for more convenient and portable.
CCA is also experiencing success in its Indonesian and PNG businesses, with the EBIT in the region at more than 19 per cent.
It attributed to their 12.9 per cent volume growth on its ‘significant cold drink cooler footprint’ in the region, saying it has ‘positioned them well for future growth.’
CCA is continuing to expand in Indonesia, and now has about 235 000 cold drink coolers and100 sales and distribution centres there, which has provided over 8000 jobs in the company.
Despite the surge in profits for the company, CCA still believes the ‘weak consumer spending’ in Australia, will likely result in its capital expenditure increasing by about $100 million to $470 Million in the last quarter of 2012.
CCA is also all but confirmed to re-enter the Australian beer market in late 2013 in a joint venture with Casella, which will give CCA the ability to sell, manufacture and distribute beer in Australia at the end of their restraint, which expires on 16 December, 2013.