Coca-Cola Amatil upbeat

Beverages company CCA is forecasting to deliver profit growth of almost 10 percent for the second half of calendar 2009 assuming current economic conditions prevail.

CCA’s Managing Director Terry Davis said notwithstanding the potential impact of the global financial crisis on future demand, he expected that the company’s growth will come through the implementation of a strong offering of revenue generating and cost-saving capital projects.

CCA posted a net profit of AUD 189.8 million for the first six months of 2009, up 10.4 percent, while revenue rose 9.9 percent to AUD 2.044 billion.

For the first half, the company has declared an interim dividend of 18.5 cents per share, against 17 cents per share last year.

Mr Davis said trading conditions in the first half of 2009 were significantly more difficult than those experienced in 2008 but the selective expansion of the brand portfolio and continued capital investment to improve customer service levels had been rewarded by the increase in new customers and increased business from CCA’s existing customers.

The highlight was the Australian beverage business (which includes beer and soft drinks) which delivered strong revenue and earnings growth. Australia delivered a record first half result with EBIT growth of 10.1 percent to AUD 248.4 million.

CCA is pursuing an organic growth strategy with its partner SABMiller to build a bigger presence in the Australian beer market.

CCA’s joint venture with SABMiller sells some of SABMiller’s premium beer brands such as Peroni. They are currently building a brewery in Australia.