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Coke takes 83 percent profit hit

Coca-Cola Amatil has posted a 82.5 percent slump in net profit after tax, representing the company’s worst result in 21 years.

The drop in profits equates to a net profit after tax of $79.9m for the year to December 31, 2013 – the weakest result since 1992, ABC News reports.

CCA took a $400m hit related to write-downs from struggling food processor SPC Ardmona, which was on the verge of closing due to increased competition from cheap imported produce.

CCA had requested a $25m assistance package from the federal government to get the processor back on its feet. The application was rejected on a federal level, however the Victorian state government last week pledged $22m, coupled with a $78m investment from CCA over a three year period.

The company also lost market share in the beverage sector last year to due to aggressive discounting campaigns by competitor Schweppes.

Excluding the one-off write-downs, CCA's profits dropped 9.6 percent to $502.8m and revenues slid 1.1 percent to $5.12b.

 

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