Coca-Cola Amatil's first-half profit has slipped 37 per cent after a year of challenges at home and abroad, and a $146.9 million writedown of fruit and vegetable canning business SPC.
The beverage giant's net profit fell to $279 million in the six months to December 31, from $445.2 million, while total revenue rose just one per cent to $4.8 billion.
Underlying earnings before interest and tax fell 6.5 per cent to $634.5 million.
The group says it faced a challenging year in Australia due to the implementation of container deposit schemes in NSW and Queensland and falling sales across its beverage selection.
Across the ocean, soft market conditions, a weak currency and higher commodity prices in Indonesia, as well as logistics and manufacturing challenges in Papua New Guinea, resulted in a combined 2.1 per cent dip in revenue to $981.7 million.
Coca-Cola Amatil managing director Alison Watkins attributed the profit slide to 2018 being a transition year, and maintained the company was on track to deliver growth by 2020.
"We saw a strong year for the New Zealand, Fiji and alcohol and coffee business, while there are also positive signs for Australian Beverages with volume growth in Coca-Cola trademark beverages in the second half," she said in a statement on Thursday.
"Despite the segment result there are also encouraging signs in Indonesia with volume growth over the last nine months of the year."
The company's $146.9 million writedown of the carrying value of SPC's assets follows a decision to sell the struggling Victorian business in November.
Coca Cola said it deemed the writedown "prudent" after receiving several strong but varied offers for SPC, leaving the financial outcome of any sale process uncertain.
The company says it expects a full-year EBIT loss of $10 million to $20 million due to lower property rental and service earnings, increased group capability, and investment in IT platforms.
COCA-COLA AMATIL HY RESULT FIZZES OUT
* Half-year net profit down 37.3pct to $279m
* Revenue up 1pct to $4.8bn
* Interim dividend of 26 cents, 50pct franked
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