SPC Ardmona takes a $400m bite out of CCA profits

Coca-Cola Amatil's full year profit has plunged 82.5 per cent after the company made $404 million in writedowns on its fruit and vegetable processing business.

CCA reported net profit of $79.9 million for the year to 31 December, instead of the after-tax profit of $502.8 million the company would have made were it not for the writedowns.

CCA's results were affected by imported private label products and lower local soft drink sales, according to group managing director Terry Davis.

The Victorian government last week announced $22 million in funding to help SPC Ardmona modernise its plant, after the federal government refused to come to the company's aid given the profitability of its parent, CCA.

At the time, Tony Abbott said CCA had a better balance sheet than the Commonwealth of Australia.

"Why should the Commonwealth taxpayers be borrowing to give money to a $9 billion company that made a $215 million after-tax profit in the last six months? It just doesn't make sense," he said.

The SPC Ardmona writedown includes $277 million in goodwill, $39.7 million in reduced brand name value and $87.3 million in reduced inventory and equipment value.

Davis pointed to a "perfect storm" of economic factors in play, including the high Aussie dollar, and said the outlook in Australia remained concerning.