BEVERAGE maker and distributor Coca-Cola Amatil says its Australian business has made a solid start to its fiscal year and is expected to generate high single-digit earnings growth in the first half of 2010.
"The Australian beverage business has made a solid start to the year and is expected to deliver high single-digit earnings growth for the first half of 2010, driven by revenue management and efficiency gains," Coca-Cola Amatil (CCA) said.
"The business is expected to achieve positive volume growth for the first half, which is a pleasing result given the less-favourable consumer environment being experienced this year."
CCA said its Australian business continued to experience a noticeable shift in consumer behaviour.
Demand for premium beverages in restaurants and cafes remained subdued but had been offset by increased sales in quick-service restaurants and take-home products from grocery stores.
Start of sidebar. Skip to end of sidebar.
End of sidebar. Return to start of sidebar.
CCA said volume and value share across the market had strengthened in the year to date.
The company said two PET bottle lines commissioned at its Northmead plant in NSW in April were delivering cost savings in line with expectations through the elimination of empty-bottle storage and reduced handling and transport costs.
CCA said its New Zealand and Fiji business expected to deliver low to mid-single-digit earnings growth for the first half, in local currency, despite challenging economic conditions in New Zealand.
Indonesia and Papua New Guinea had also experienced a solid start to the year, with volume growth of about 10 per cent in the first quarter.
CCA said 2010 would see a significant step-up in investment in production capacity, cold drink coolers, new product development and brand marketing in Indonesia by both CCA and The Coca-Cola Company.
"Notwithstanding the increased level of forward investment, the region expects to deliver double-digit local currency earnings growth for the first half," CCA said.
"Volume and earnings for the Indonesian business are seasonally skewed to the second half due to the timing of the festive season."
In relation to its Pacific Beverages joint-venture beer business, CCA said the beer market overall had experienced a softer start to the year, but Pacific Beverages premium beer portfolio had continued to increase volumes and market share.
CCA said Pacific Beverages now accounted for almost 10 per cent of the premium beer market in Australia.
The Bluetongue brewery in NSW would be commissioned later this month, with the first commercial production expected at the end of June.
CCA said net debt was expected to be about $1.8 billion at the end of the first half, a reduction of about $100 million since the first half of 2009.
CCA said it had no refinancing requirements for the next 12 months.
QBE acquires US insurance companyStreamlined First Tennessee narrows loss
