CCA report another excellent result from Indonesia and PNG. According to CCA’s report, to deliver 5.6% growth in net profit to $247.1 million also demonstrates that the consistent investment in product innovation and manufacturing and distribution capability has strengthened its position. It further highlighted the strong growth from Indonesia and PNG, reporting volumes growing by 12.9% and EBIT growing by 19.3%. It referred to increasing manufacturing capacity and capability and developing a “cold drink cooler footprint”.
CCA’s investment in vertical integration including the self-manufacture of PET bottles, bottle performs and bottle closures delivered returns ahead of target. “CCA now products some of the world’ lightest PET beverage bottles and has reduced the carbon footprint of every bottle it self-manufactures by more than 20%”.
CCA has expanded the alcoholic beverages portfolio in the Pacific region with the proposed acquisition of the Foster’s Fiji brewery and distillery and the establishment of premium beer distribution agreements with Grupo Modelo, Carlsberg and Molson Coors for Fiji, Papua New Guinea and the Pacific Islands.
Australia – The Australian business delivered an increase in Earnings Before Interest and Tax (EBIT) of 4.9% to $294.8 million on volume growth of 3.1%, a solid result given the weak consumer spending environment and poor weather in January and February. The first quarter was heavily impacted by the wettest summer in over 50 years which affected NSW and Queensland throughout the peak summer trading season. The resultant lower mix of cold drink sales impacted revenue per case and EBIT growth for the half. A significant improvement in momentum the second quarter delivered higher volume and revenue growth driven by a strong May/June promotional programme. In addition, the business achieved improvements in market share in both the grocery and route channels during the half.
New Zealand & Fiji – The New Zealand business reported a decline in volumes and earnings as the economy and consumer confidence remained soft with grocery volumes across the industry in decline for the half. New Zealand also experienced one of its coolest and wettest summers on record with cold drink sales during the peak summer trading season particularly affected. Notwithstanding the volume decline, the business was able to achieve market share gains in the grocery channel of over one percentage point.
Indonesia & PNG – The Indonesian business has continued to rapidly expand its sales, manufacturing and distribution footprint across all major population centres and now has over 30 beverage production lines, 100 sales and distribution centres, around 235,000 cold drink cooler doors in the market and employs over 8,000 people. Strong volume growth during the half was driven by the continued success of one-way-pack products, new product launches and further package innovation.
The PNG business delivered another solid earnings result with strong volume growth supported by the continuing economic prosperity of the country which is benefitting from increased mining activity and improved commodity demand. The continued focus on driving per capita consumption through increased promotional activity and new cold drink cooler placements all contributed to the strong result.
Alcohol, Food & Services – Alcohol, Food & Services earnings increased by 3.7% due to a solid result from the Services division and a full six month inclusion of revenue and earnings arising from the new manufacturing, sales and distribution agreement with Beam, partly offset by a decline in SPC Ardmona earnings.
