Pricing proved the most challenging for the company in 2014.
“We’re benefiting from lower commodity prices, but rate realisation is definitely the challenge in Australia at the moment”, Group Managing Director, Alison Watkins said commenting on CCA’s trading position.
In total, the company saw a drop in revenue per unit case from $8.71 in FY13 to $8.45 in FY14.
Volume however remained stable, with a percentage change of only 0.9 per cent.
“In Australia we’re actually pleased with volume; pricing is more the area of challenge.”
CCA is also continuing to face challenges in the Indonesian market, where the economy has slowed.
While CCA was also pleased with volume gains in the Indonesian market (up 17.6 per cent on FY13), the company also reported that inflation in the country had however impacted on segment earnings, with both EBIT and revenue per unit case in decline – -65.2 per cent and -14.2 per cent respectively.
After the announcement of today’s results, Ms. Watkins said that the company’s primary goal will be to lift results in FY15.
“We’re very focused on stabilising the Australian business through this year…and 2015 not being any worse than 2014.”
The company has already begun implementing a number of significant costs out and restructuring activities, including a number of plant closures, cuts to staffing and SKUs.
CCA is also, not surprisingly, reconsidering pack pricing and formats, with plans to continue to build on its “perfectly small” 250ml can range, released towards the end of 2014, as well as plans to release new SKUs, such as a 250ml multipack and 1L glass contour pack. CCA will also launch its “100 years of contour” Coca-Cola campaign later this year, focusing on the unique shape of the Coca-Cola bottle.
CCA will also be leveraging on health trends, increasing its promotion and focus on brands Coke Life, Sprite and Mount Franklin.
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