Competition and category trends in Australia will affect Coca-Cola Amatil's (CCA) results in the first half of 2017, the company has warned.
Trading in Australian beverages, which accounts for two-thirds of its market, has been weaker for the year to date compared to last year, with all channels experiencing volume and price pressure, CCA said.
As a result, the company has downgraded its half-year forecast, saying its underlying net profit after tax will decline for the first half of 2017, with full year underlying net profit after tax to be broadly in line with last year.
The news comes as consumers increasingly move away from core soft drink brands in favour of healthier categories, a trend that CCA is moving to embrace through its water, tea, dairy and energy brands.
“Amatil's initiatives, which include strategies to address the structural changes in our market and rebalance our portfolio, working together with our partner, The Coca-Cola Company, continue to be implemented,” the company said.
“Further time is required for these initiatives to gain traction.”
