Coca-Cola Amatil is cutting 260 jobs as a part of a $100 million cost cutting program brought on by what it calls challenging trading conditions.
The drinks maker is targeting savings from procurement, reduced support costs and improved productivity from the significant investment made in the supply chain and in IT investment over the past five years.
Alison Watkins, Group Managing Director, says a strategic review announced in October is making good progress.
The restructure will lead a loss of up to 260 non-frontline positions, the majority in 2015.
Trading conditions in Australia continue to be challenging, she says.
However, she expects second half earnings before interest and tax to exceed first half earnings of $316.7 million.
The company last year posted a $404 million write-down on its fruit cannery SPC Ardmona Full-year net profit fell 82.5% to $79.9 million, compared to a $457.8 million profit in the previous year.
The main Coca-Cola Company in the US recently announced that it is using Australia’s Coca-Cola Amatil to help capture the lucrative exploding middle class market in Indonesia.
The Coca-Cola Company will invest US$500 million into CCAI, a subsidiary of Coca-Cola Amatil, in return for an equity ownership interest of 29.4%.
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