Coca-Cola Amatil looks to expand

AAP
February 22, 2012

COCA-COLA Amatil says further boosting of its investments in Indonesia and Papua New Guinea will be a high priority in 2012.

CCA today booked an annual net profit of $591.8 million for the 2011 calendar year, up 19 per cent on the prior year.

The result included a $59.8 million gain in significant items.

Net profit before significant items rose 5 per cent to $532.0 million.

Trading revenue lifted 6.9 per cent to $4.8 billion.

The company declared a final dividend of 30.5 cents per share, fully franked, up 8.9 per cent.

The significant gain of $59.8 million comprised $170.3 million in after-tax profit from the agreement to sell CCA’s 50 per cent share of the Pacific Beverages brewing joint-venture to SABMiller in December 2011, less $110.5 million in restructuring and associated costs for the SPC Ardmona food business.

CCA group managing director Terry Davis said the result was a strong one in a tough trading environment.

“I believe that to deliver 5 per cent growth in net profit to $532.0 million, as well as $170.3 million in after-tax profit from the Pacific Beverages transaction, in what was undoubtedly the most challenging year the business has faced in over a decade, is a credit to the strength of our business model,” Mr Davis said in a statement today.

“By investing through the cycle, we have continued to outperform our peer group in the food and beverages sector, and strengthened our market leadership position by delivering service level improvements to our customers.”

CCA said its businesses in Indonesia and Papua New Guinea had generated strong growth in earnings, boosted by increased manufacturing capability and the distribution of more cold drink coolers.

“The up-weighting of our investment in Indonesia and PNG remains a high priority as the growth outlook for both businesses continues to be favourable,” Mr Davis said.

“The Indonesian economy remains very buoyant with GDP (gross domestic product) growth expected to be over 6 per cent in 2012, supported by positive government financial reforms that are encouraging much-needed investment in infrastructure.”