Soft drinks, water and juice have returned to growth for Coca-Cola Amatil, the company announced in a trading update today (22 January). The 4Q20 rise was 0.4 per cent, after falling for the previous three quarters.
The 4Q20 turnaround reflects the lifting of COVID-19 lockdown restrictions in Victoria in the lead up to Christmas trading.
On a full year basis, volumes were down 4.2 per cent on FY19 and revenue down 3.5 per cent. Amatil will release its audited FY20 results on 18 February.
Group managing director Alison Watkins said the company experienced strong demand in both Australia and New Zealand markets, mainly in the Australian grocery channel.
“While we are encouraged by recent trading in Australia and particularly in New Zealand, month to month volatility remains,” Watkins said.
She added that particularly in Australia, on-the-go (OTG) trading varies considerably by state depending on COVID-19 restrictions.
While the OTG channel continued to recover when restrictions eased, the ongoing limits on mobility and travel saw at-home consumption volumes continuing to be weighted towards the grocery channel.
From a category perspective, the Coca-Cola trademark delivered strong volume growth, up 4.6 per cent in the quarter and led by Coca-Cola No Sugar. The trademark delivered volume growth over the full year of 1.9 per cent. The Energy category was another standout, with volumes up 14.9 per cent in 4Q20 and 8 per cent for the full year.
Watkins said the Scheme of Arrangement with CCEP was continuing and Amatil expected a scheme booklet to be with shareholders by early March.