No near-term upside in Indonesia: Amatil<\/p>\n
SYDNEY (Reuters): Coca-Cola Amatil Ltd Managing Director David
\nKennedy said on Sunday he did not see any upside in the soft
\ndrink bottler's Indonesian operations for some time.<\/p>\n
\"I think in the case of Indonesia I would say that our
\nbusiness has bottomed out there and assuming that there's no
\nother social or political shock, that we're about where we're
\ngoing to be for a while,\" Kennedy told the Nine Network's
\nBusiness Sunday.<\/p>\n
\"I don't see any upside there for some time. In the case of
\nSouth Korea, that's less clear.\"<\/p>\n
\"I don't think South Korea is in the long term a problematic
\nsituation that Indonesia is and so I think, one, we have a much
\nbetter opportunity to grow our business regardless of what the
\neconomy does,\" he said.<\/p>\n
Kennedy said he thought the South Korean economy would recover
\nsooner there than some other countries in Asia.<\/p>\n
C-C Amatil last week reported a 4.3 percent rise in net profit
\nfor the half year to June 30 of A$102.3 million but warned that
\nthe depreciation of the Philippines peso, losses in Indonesia and
\nonly a small contribution from its newly acquired Korean
\noperations would push second half profits lower.<\/p>\n
C-C Amatil, which is about 42 percent owned by Atlanta's The
\nCoca Cola Co [KO.N], said Indonesia's economic crisis and a lower
\nPhilippines peso effectively cut A$29.7 million from its first
\nhalf net profit.<\/p>\n
Kennedy said on Sunday the Philippines would represent C-C
\nAmatil's largest market in terms of volume and profitability and
\nwould be a key driver of long-term value for the company.<\/p>\n
He said C-C Amatil was a market leader in Indonesia and that
\nthe company was managing its business there according to the
\neconomic situation.<\/p>\n
\"Our business is cash-flow positive and we'll be able to
\nmaintain that for an indefinite period of time so we're adjusting
\nour plans as we go along to the situation,\" Kennedy said.<\/p>\n
\"It will take some time, I believe, for that country to
\nadjust,\" he said.<\/p>\n
With its results last week, C-C Amatil also announced it would
\nbook a A$478.2 million extraordinary gain from non-cash profits
\nfrom its spinoff in late June of its European operations into
\nCoca Cola Beverages Plc.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/no-near-term-upside-in-indonesia-amatil-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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