Melbourne, Aug 20 - Australian soft drinks group Coca-Cola Amatil reported a 7 percent rise in first-half profit on Wednesday, in line with market forecasts, as it sold more drinks in Australia, New Zealand and Indonesia, and reaffirmed its full year guidance.
The group, which also sells alcoholic drinks, bottled water, canned fruits and jams, said it still expected high single-digit growth in earnings before interest and tax in the second half before one-offs, with a target of around 7 percent EBIT growth.
Net profit before one-offs rose to A$171.9 million ($149 million) for the six months to June from A$160.9 million a year earlier. Four analysts on average had expected a net profit of A$169.4 million, according to Reuters Estimates.
Amatil said it expected its cost of goods sold per case to rise by just over 3 percent for the full year, and would continue to try to recover those increases from its customers.
It plans to invest between A$20 million and A$25 million in the Bluetongue brewery, and a further A$30 million to A$35 million next year, through its Pacific Beverages joint venture with SABMiller Plc.
In Australia in the first half, operating earnings grew 10 percent, with a recovery in the second quarter after a hit from heavy discounting by its main competitor in supermarket sales in the first quarter. Volumes grew 2 percent in the first half.
While analysts had been concerned about the slowing New Zealand economy, the company said it sold 3 percent more drinks there in the first half, increased pricing and extracted cost savings to boost operating earnings by 18 percent.
In Indonesia, earnings tripled to $10.4 million, on volume growth of nearly 5 percent.
Coca-Cola Amatil Chief Executive Terry Davis has said the group is interested in buying Cadbury Plc's Australian Cadbury Schweppes drinks business. Cadbury put the business, which has around 300 million pounds ($558 million) in annual sales, up for review in July.
Shares in Coca-Cola Amatil, 30 percent owned by the Coca-Cola Co, have fallen 16 percent so far this year, outperforming a 21 percent slide in the broader market . ($1=A$1.15)