Changing consumer behaviour amid COVID-19 restrictions continues to have adverse impacts on Coca-Cola Amatil’s business, as it reports a nine per cent drop in trading volumes in June 2020 compared to June 2019.
Overall, Amatil's second quarter 2020 volume has declined by about 23 per cent to the prior corresponding period. It announced the group expects to incur around $160-190 million in non-cash impairments in its 1H2020 accounts, and is predominately related to its Indonesian business.
“These expected impairments are non-cash accounting adjustments and we remain very confident about the long-term prospects for our Indonesian business,” said group managing director Alison Watkins.
The company is expected to give a detailed trading update of its first half results in August, however, has indicated “an improvement in trading conditions in its major markets in June, reflecting the gradual easing of COVID-19 related restrictions”.
In New Zealand, Amatil’s June 2020 volumes increased by around four per cent on June 2019, while in Australia 2020 volumes declined by three per cent, with no non-alcoholic ready-to-drink volumes declining by four per cent.
Indonesia has experienced around a 23 per cent decline compared with June 2019, despite improving on the May 2020 and April 2020 decline rates.
“The impacts of the pandemic are continuing to evolve with the situation fluid across all of our markets,” said Watkins.
“I am proud of the way the Amatil team has responded to the unprecedented challenges we have faced and am confident that we have a clear path forward, which coupled with our ample liquidity, strong balance sheet and solid credit ratings, positions us well, to emerge from the pandemic as a stronger, better business.”
Amatil will release its upcoming half year 2020 results on 20 August. It will provide a split of segment revenue into non-alcohol and alcohol for the Australian and Pacific segments.
