By Rhiannon Hoyle
SYDNEY-- Coca-Cola Co.'s Australian distributor said full-year
profit more than tripled, bouncing back from the prior year when it
wrote down the value of a fruit-processing business.
Underlying earnings, which strip out one-off charges, declined
though, as a retail price-war battered its Australian soft-drinks
unit, while subdued consumer spending meant that promotions were
less effective in bolstering sales.
Coca-Cola Amatil has faced several headwinds in recent years,
from flat soda sales to a strong Australian dollar that has hit
local manufacturing by making imports cheaper. Last year, the
Sydney-based company reviewed its food-and-beverage operations to
look for ways to cut costs and lure customers with new products,
including more low-calorie drinks.
More recently, it reported a shake-up of its top ranks,
following which finance-chief Nessa O'Sullivan and the managing
director of its SPC Ardmona unit, Peter Kelly, will now leave the
group.
Coca-Cola Amatil, which is 29%-owned by the U.S. beverage giant,
said net profit for the year through December increased to 272.1
million Australian dollars (US$211.5 million), compared with A$79.9
million in 2013, when it took an impairment charge against the SPC
Ardmona fruit-processing business.
That missed a A$370 million median consensus of five analysts'
forecasts compiled by The Wall Street Journal.
Profit before one-off items fell 25% to A$375.5 million.
The board cut its final dividend 31% to A$0.22 a share.
Coca-Cola Amatil produces and distributes the flagship Coke
brand in Australia and four neighboring countries, where it goes
head-to-head with PepsiCo. Inc. in the cola drinks market. It also
distributes the premium spirits portfolio of Beam Global Spirits
& Wines such as Canadian Club whiskey.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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