By RACHNA LAL
Whilst a number of factors led to Coca Cola Amatil’s reduction in earnings for 2013 of 6.9 per cent, the Fijian arm performance obviously was not a contributor to this reduction.
In fact, the “strong return to growth by Fiji and New Zealand” was one of the positives for Coca Cola Amatil as was highlighted in their financial results for the year ended December 31, released yesterday.
The financial results revealed Fiji and New Zealand delivered 18 per cent earnings growth driven by improved performance from both countries.
The report said: “The Fijian business delivered strong volume and earnings growth as it cycles the impact of major floods the past year and continues to benefit from the strong growth of Minute Maid Pulpy.”
Coca Cola Amatil’s group managing director, Terry Davis, said: “The positives for the year included the Australian beverage non-grocery channel which delivered volume and earnings growth.
“Also the strong return to growth by New Zealand and Fiji and Coca Cola Amatil’s re-entry into the Australian beer and cider market in mid-December.”
Profits down
Coca Cola Amatil took an axe to its struggling fruit cannery SPC Ardmona after booking a massive AU$404 million write-down on the division.
The huge value wipe out has pushed Coca Cola Amatil’s bottom line full year net profit down by 82.5 per cent to AU$79.9 million, against a profit of AU$457.8 million in 2012.
It was the poorest profit result since 1994.
However, the write-downs are non-cash, with Coca Cola Amatil’s underlying net profit for the 2013 year down only 9.6 per cent to AU$502.8 million, from AU$556.3 million in 2012.
The beverage company is also facing intense pressure at its flagship Australian soft drink business and its once high-flying Indonesian arm has suffered an earnings slide.
Fijian alcoholic business
Coca Amatil had acquired Paradise Beverages in 2012 (formerly known as Foster’s Group Pacific Limited).
It said the Fijian alcoholic beverage business is performing ahead of plan and has established an export business for the beer and Fiji rum portfolio.
“Strong progress has been made on the revitalisation of Paradise Beverages in Fiji in both the beer and rum operations,” the report said.
“Capital upgrades are well advanced, a strong new product pipeline and establishment of an export business for the Fiji beer and rum portfolio.”
Australian alcoholic expansion
Coca Cola Amatil returned to the premium beer and cider market in Australia in mid-December.
The successful start-up of brewing at the Australian Beer Company in both international and local beer and cider brands enabled the business to be in market on December 17 with the expanded beer and cider range.
Together with their domestic premium and craft beer portfolio, the expanded alcoholic beverages business is targeting to generate around one per cent in incremental earnings growth in 2014.
