Coca-Cola puts faith in new products after poor half year performance in Australia
Coca Cola Amatil will be hoping that its Coca-Cola No Sugar and Keri Juice Blenders, launched in June, help raise the company’s performance in Australia after it recorded a 29.3% H1 profit drop.
Whilst earnings improved in New Zealand, Fiji, Indonesia and Papua New Guinea, this wasn’t enough to offset the significant dip in Australia, with profits down to $140.1mn, having been $198.2mn over the same period last year.
The drop in the company’s Australian beverages division is reportedly down to increasing competition and discounting that has hurt revenues.
However, Managing Director Alison Watkins has expressed that whilst hurdles still need to be overcome, significant improvements have been made since Easter, largely down to the launch of these new products.
"We did get off to a difficult start to the year and we have seen, I would say, a steady improvement since then and a return to more normal conditions.
"A couple of very significant new product launches are really helping our momentum for the second half."
The company remains confident that it will still achieve a surplus in line with 2016’s annual profit of $418mn, something that will require a 4% growth in its Australian sector for the remainder of the year.