Page 7 - Packaging News Sep-Oct 2020

September-October 2020 | www.packagingnews.com.au
| NEWS 7
“Challenging” conditions bite CCA revenue in 1H20
Amcor sees solid FY2020 results
COCA-COLA Amatil (CCA) said “challenging” trading condi- tions resulted in a 9.2 per cent decline in trading revenue over the first half of 2020. Its margins were adversely impacted by reduced volumes and shifts to lower margin channels and packs as consumers responded to Covid-19 restrictions.
CCA managing director Ali- son Watkins the company’s rev- enue declined in line with vol- ume, but the impact on margin percentages was much greater (particularly in Australia), reflecting the compound impact of reduced vol- umes and marked shifts in channel and pack mix as consumers adapted to the Covid-19 restrictions.
“Our tight cost manage- ment enabled us to offset some of the adverse impact on earnings,” Wat- kins said.
“As Covid-19 restrictions have eased across each of our markets we are seeing signs of improvement.”
CCA’s Australian busi- ness saw a dramatic change in consumer behav-
iour throughout the first half of 2020 as consumer buying patterns adapted to Covid-19 restrictions.
The company’s non-alcoholic, ready to drink business experi- enced a transition of volume to lower-margin channels (such as grocery and national quick ser- vice restaurants) and a shift to lower margin at-home consump- tion packs (such as multi-serve PET and multi-pack cans).
Alcohol and coffee were also adversely impacted, with outlet closures and trading restrictions in the on-premise channel.
AMCOR CEO Ron Delia said the 2020 financial year had been a “milestone” year for the com- pany. Amcor reported a US$1.03bn net profit for FY2020, an 11 per cent increase on the previous year.
The company said it has oper- ated its plants around the world with “minimal” disruption dur- ing the Covid-19 pandemic. It reported that, for the six months to 30 June, volumes of both flex- ible and rigid packaging were up 1 per cent over the same period last year.
“The extent to which the global pandemic has influenced overall demand for Amcor’s
products in each region has been mixed, as certain end markets in each geographic area appear to have benefited at varying times while others have been con- strained,” the company reported.
Flexibles accounted for most of Amcor’s revenues in the 2020 financial year, bringing in US$9.755bn in net sales. This is a decrease just shy of 1 per cent compared to the previous finan- cial year. The company said the decrease was due to “unfavour- able impact from the pass through of lower raw material costs”. Flexibles volumes were 0.1 per cent higher than the prior financial year.
The Covid quarter hit CCA’s revenue.
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