Coca-Cola Amatil flags profit hit

CCA expects a 15% drop in H1 earnings, SPC sales revenue rebounding.

Coca-Cola Amatil has warned it expects to take a hit to first half profit as weakness in the Australian and Indonesian beverage markets persists.

CCA has flagged a 15% decline in earnings before interest, tax and significant items in the six months to June 30, 2014, compared with the previously corresponding period, noting it expects challenging trading conditions to continue.

Managing Director Alison Watkins today said the generally weak consumer confidence and spending environment in Australia, combined with substantial cost inflations in Indonesia led to the earnings decrease.

However, the company reported that strong customer and retailer support for its SPC Ardmona business following a widely publicised plea for assistance earlier this year.

CCA said SPC sales revenue had increased 10% this quarter and is on track to break even for the first half.

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