2007 Shareholder Review - Coca-Cola Amatil

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Year in Review continuedOperations ReviewCCA’s continuingoperations deliveredEBIT of $648.4 million,an increase of 15.3%on 2006.Australia achieved an excellentresult with EBIT growth of 12.3% onstrong trading revenue and volumegrowth of 9.1% and 2.6%respectively.The result was achieved by CCA’scontinued focus on new productand package innovation and pricerealisation, and was supported bythe emerging alcohol business.15.3%Increase in earningsto $648.4 millionCCA’s continued investment in newhigher value premium products andpackages such as Brand Coke in385ml glass and slim line cans,Powerade Isotonic, and Pumpedflavoured water delivered stronggrowth for the year as consumersresponded positively to CCA’sincreased range of premium brandand pack combinations.New Zealand & Fijirecovered from a difficult 2006trading year to deliver a record EBITgrowth of 19.5% on revenue growthof 9.1% and volume growth of1.5%. This was an excellent resultgiven the business was cycling thesuccessful launch of Coca-ColaZero in New Zealand in the first halfof 2006.Indonesia & PNG – Theregion more than doubled EBIT to$36.8 million, with strong volumegrowth of 7.2% and revenue growthof 4.5% as the economic recoveryin Indonesia that commenced in thesecond half of 2006 continuedthroughout 2007.Food & Services deliveredEBIT growth of 5.1% on revenuegrowth of 5.5%, which was a solidresult and was achieved despite thecontinuing impact on SPC Ardmonaof the drought, increasedcommodity prices and increasedcompetition from importedpackaged fruit and vegetableproducts.Pacific Beverages, CCA’salcoholic beverage JV withSABMiller achieved strongpenetration with its premium beerbrands particularly Peroni NastroAzzurro and Miller Genuine Draft,achieving volume growth of morethan 150% over 2006 when thebrands were under other distributionarrangements.4 CCA Shareholder Review 2007 Year in Review
Acquisition ofBluetongue BreweryOn 5 December 2007, PacificBeverages acquired BluetongueBrewery. Bluetongue’s premiumbeer brands include BluetonguePremium Lager, BluetonguePremium Light, BluetongueTraditional Pilsner, BluetongueAlcoholic Ginger Beer, and BondiBlonde. The acquisition ofBluetongue Brewery adds a fastgrowingand uniquely Australianpremium beer brand to PacificBeverages’ existing portfolio ofimported premium beers and fitsperfectly with CCA’s strategy ofdeveloping a material presence inthe Australian premium beer market.Brewery DevelopmentPacific Beverages intends toestablish a boutique premiumbrewery at Warnervale in New SouthWales in order to further accelerateits premium beer strategy. Thebrewery site, when completed,will enable Pacific Beverages tomaterially increase production ofBluetongue to meet increasednational demand, while alsoproviding capacity for the potentialproduction of other Australianpremium beer brands. The brewery,with a capacity of 500,000hectolitres, is expected to becompleted during 2010 and willbe jointly funded by CCA andSABMiller.Off-MarketShare Buy-BackCCA successfully completed anoff-market share buy-back on29 January 2008. A total of 21.7 millionshares, or approximately 2.9% ofCCA’s issued shares, were boughtback at a price of $7.84, representinga maximum 14% discount to theapplicable market price.Disposal of theSouth Korean BusinessCCA completed the sale of itsSouth Korean business to LGHousehold & Health Care Ltd(LGH&H) on 24 October 2007 for$520 million including net debt. Thefinal loss on disposal after incometax expense was $49.4 million, or$46.3 million on a pre tax basis.This amount has been recognisedas a significant item for 2007.CCA Shareholder Review 2007 5
Page 1 and 2: 2007ShareholderReview
Page 3 and 4: Dear Shareholder,In 2007 Coca-Cola
Page 5: 2007 has been markedby the delivery
Page 9 and 10: Five Year Financial Summary2007 200
Page 11 and 12: MarketplaceWe are proud of our Nort

2007 Shareholder Review - Coca-Cola Amatil

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