Coca-Cola Amatil today reported its half year results for 2016, delivering a solid result for the Group with EBIT growth of 3.2% and EPS growth of 7.8%.
Coca-Cola Amatil Group Managing Director, Alison Watkins said, “This is a solid overall performance for the Coca-Cola Amatil Group, it shows progress on our shareholder value proposition and reflects the strength that comes with our diversity of markets, products and categories.”
“We are pleased to have achieved revenue, EBIT and EPS growth this half, with our growth markets of Indonesia, Papua New Guinea, Fiji and Alcohol & Coffee contributing strongly to this result, as well as a sound performance in New Zealand.”
“Our Indonesian business performed strongly in the first half and despite local economic conditions remaining soft, we are pleased to see the improvements made in our route-tomarket are delivering results. The business also benefited from the month of Ramadan being 10 days earlier this year.”
“Alcohol & Coffee has gathered additional momentum by delivering double-digit revenue and EBIT growth as a result of strong, measured improvements in all key categories, as well as an improved contribution from the Coffee business.”
“In Australia volumes in still beverages increased by 9.3%, driven by strong performances water, energy and dairy. This was the result of innovation and investment across the categories that commenced in 2015 including the introduction of FUZE Tea and Monster Energy and the new Mount Franklin marketing campaign.”
Ms Watkins said the improved performance across each of these areas helped to offset the structural adjustments that continued in Australian sparkling beverages, which experienced a decline in volume in the first half.
“Consumer tastes and trends in Australia are continuing to evolve and our focus over the last two years has been on rebalancing our full portfolio. We are moving to meet consumer demands with a greater focus on portion size and product reformulations in Sparkling and increased investment in Stills. We are also continuing with a strong cost-management program, improved route-to-market performance and a reinvestment of cost savings into price and brand.”
“SPC reported a modest loss in the half with declines in both volume and revenue. That said, we are seeing some encouraging signs in our snacking fruit and tomato products.”
“The Group result speaks directly to the strength of our underlying value proposition for our shareholders. While structural adjustments continue in the Australian market and economic conditions in Indonesia remain soft, we are confident of our plans for steady growth at the core and accelerated growth in our other businesses. Combined with a continuous focus on cost, this will deliver attractive, sustainable returns for our shareholders.”
Our 2014 strategic review continues to set the direction for our Group, Ms Watkins said, “In 2014 we outlined our plans to restore performance and return to growth. We know that conditions, particularly in Australia, will continue to be challenging and that our task will be to continue the performance of our growth businesses in the second half, demonstrating that our growth is real and sustainable.”
“We are confident that our portfolio diversity combined with our focus on category leadership, improved productivity and in-market execution, and better alignment with our partners, particularly The Coca-Cola Company, will enable us to deliver on our commitment to our shareholders.”
“We know that our markets will continue to challenge us, however the plans we put in place two years ago are starting to deliver the outcomes we anticipated. We have taken another step forward in this half and we intend to build on this.”