Uncategorised

Coca-Cola reports $234.1m profit in first half

Coca-Cola Amatil has recorded $234.1 million in profits in its half yearly report.

In the period ending 1 July 2011, the company experienced a 5.5 per cent increase on the same period the previous year.

CCA Group Managing Director Terry Davis said the company has bounced back from a slump in the 2010 financial year.

“I believe that the operating performance in the first half has been solid given the business has had to manage external headwinds, as well as the cycling of a very strong first half result in 2010,” he said.

“The combination of devastating natural disasters in Australia and New Zealand, rapid increases in resin costs and the impact of translation on offshore earnings from the stronger Australian dollar reduced our net profit growth by around 5% for the half.

“The successful execution of our infrastructure programs in expanding manufacturing capacity and improving operational efficiency has again delivered a reduction in operating costs and further improvements in our customer servicing capability.”

In Australia, CCA has seen an increase of 3 per cent for the half year, reporting profits of $281 million.

The natural disaster crises in Australia including Cyclone Yasi and the Queensland floods during the period damaged profit increase in the period, as did the reduced consumer spending environment.

There was no growth reported in the New Zealand business but Indonesia saw a strong increase.

The alcohol food and services section of the company experienced an earnings growth of 1.7 per cent in the half year.

The strong Australian dollar has impacted competitiveness for the company who are up against cheap imported brands and private label categories.

Premium beer has continued to perform well for the company, particularly with the success of the Bluetongue brewer opening in New South Wales last year.

 

Send this to a friend