Coca Cola Amatil posted a horror full-year 2013 profit, after a write-down and increasing competition in the soft drinks market.
Here’s what you need to know:
- CCA booked 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 the year before
- The SPC write-down comes after the Victorian state government agreed to fork out $22 million to help restructure the business
- CCA is spending $78 million on the restructure
- “Difficult trading conditions” caused a 9.3% decline in Australian beverage earnings
- There was a 10% volume growth in the Indonesian market, but inflation, currency depreciation and economic challenges in Papua New Guinea impacted segment earnings
- There was some good news from New Zealand: CCA booked a 10% local currency EBIT growth there
We’ll have more on the share price soon.