Coca-Cola Amatil Full-Year Profit Triples

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 [e-mail]

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