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Coca-Cola Amatil on Track for Full Year Forecast

Source: Reuters
16/10/2008

Melbourne, Oct 16 - Australian soft drinks group Coca-Cola Amatil reaffirmed it expects around 7 percent earnings growth in the second half after a strong third quarter, but warned the outlook could change if consumer demand slips in November and December.

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It also said on Thursday it had lined up debt facilities to cover all its refinancing needs for this year and next.

"Notwithstanding the volatile market conditions, CCA has experienced solid trading in the third quarter," it said.

In Australia, it said earnings and volumes were in line with expectations following a very strong third quarter last year.

It is benefitting from its major competitors Cadbury Schweppes and Frucor, owned by Danone, being distracted by sale processes, it said in a slide presentation for analysts visiting its New Zealand operations.

In New Zealand, earnings growth had slowed from a very strong first half, as the country slid into a recession, while in Indonesia Amatil had very strong volume and earnings growth in the third quarter.

Coca-Cola Amatil expects its costs per case to rise by just over 3 percent this year, based on constant currency, but aims to recover those increases from customers.

Amatil shares have fallen 15 percent so far this year, less than half the fall in the broader market as it is seen as a defensive stock.



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