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Virus smashes Coca-Cola Amatil sales

Business

Coca Cola Amatil says COVID-19 lockdown restrictions have severely affected volumes across its major markets in April and the first three weeks of May.

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The beverage giant says group sales volume declined by about 33 per cent in April compared with a year earlier.

Volumes are still down 26 per cent in the first three weeks of May compared with a year ago.

The company says while revenue since the start of April has broadly declined in line with volume, the impact on its margins has been much greater, reflecting marked shifts in channel and package mix.

The adverse impact has been compounded by loss of scale in Indonesia, where volumes slid 40 per cent in the period and resulted in a pronounced impact on earnings.

“April was a challenging trading month for the group, with the full brunt of the COVID-19 restrictions felt across all of Amatil’s markets throughout the peak Easter and Ramadan trading periods,” group managing director Alison Watkins said in a statement on Tuesday.

“With many customers remaining closed or operating at significantly reduced capacity, there has been unprecedented disruption to trade.”

She said the company had focused on partially offsetting the impact of weaker trading by maintaining a disciplined management of costs and capital expenditure. It was also focusing on preserving strong cash flows and ample liquidity.

– AAP

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