Coca-Cola Amatil turns to the bottle to slow sales declines in 2017 - results

Full-year sales come in 2.8% down at AUD4.93bn (US$3.89bn)
Improvement in second half of 2017 after near-4% fall in H1
Bottom line to be impacted by Container Deposit Schemes in several Australian states and territories

An improvement in sales in the second half of the year slowed the rate of decline for Coca-Cola Amatil

Coca-Cola Amatil has posted a disappointing set of sales results for 2017, with its partnership with alcohol brand owners providing relief in the 12 months.

The Australia-based group said earlier today that its sales in the year fell by almost 3% compared to 2016. The 12-month performance comes after a 3.7% decline in the top-line was reported for the first six months of this year.

In its main market of Australia, which accounts for 51% of total volumes, soft drinks sales fell by 3.3%. Indonesia & Papua New Guinea - 37% of group volumes - dipped by 1.4%, while New Zealand & Fiji - almost 12% of group volumes - increased sales by almost 2%.

CCA's alcohol & coffee reporting unit, meanwhile, was up by 6%, with alcohol sales increasing by single digits in both value and volumes. The group is a brand partner with Beam Suntory, Molson Coors, C&C Group and Boston Beer Co.

"The strong results delivered in 2016 continued into 2017 for our Indonesia & PNG, and Alcohol & Coffee segments," said company MD Alison Watkins. "Our diverse portfolio of businesses and strong balance sheet enabled us to deliver EPS growth for our shareholders, notwithstanding the challenges experienced by Australian Beverages at the start of the year."

Looking forward, CCA flagged the recent and near-future introductions of container deposit schemes in Australia. New South Wales kicked off its CDS at the start of December, with the group upping its prices in the state "to recover the estimated costs of the scheme". Australian Capital Territory, Queensland and Western Australia are all expected to follow suit within the next 12 months. CCA warned that its "near-term earnings will be impacted" by the implementations.

To read Coca-Cola Amatil's official results statement, click here.

Let's block ads! (Why?)