SPC loss re­ported

Shepparton News - Country News - - FRONT PAGE -

SPC’s par­ent com­pany has suf­fered a profit slump but the com­pany says it sees a strong fu­ture for the fruit pro­ces­sor.

The can­ner has been un­able to record a profit in re­cent years and this year SPC con­trib­uted a ‘‘mod­est’’ loss to its par­ent com­pany, Coca-Cola Amatil.

The slide in head­line profit was due to a $171.8 mil­lion af­ter tax write­down on its SPC fruit pro­cess­ing and can­ning busi­ness.

CCA paid $523 mil­lion for SPC Ard­mona in 2005, when it was turn­ing over about $351 mil­lion an­nu­ally. Its as­sets were val­ued about $595 mil­lion net in 2005.

CCA manag­ing di­rec­tor Ali­son Watkins said SPC had con­tin­ued to progress its pro­gram to mod­ernise the busi­ness, how­ever con­tin­ued pres­sure in core tra­di­tional cat­e­gories re­sulted in a mod­est loss for the busi­ness.

CCA has writ­ten down the value of SPC to $156 mil­lion.

‘‘The SPC team has worked hard to de­liver on its in­vest­ment plan ob­jec­tives and has made sig­nif­i­cant progress in mod­ernising the man­u­fac­tur­ing ca­pa­bil­i­ties to en­able us to shift into more prof­itable snack­ing prod­ucts,’’ Ms Watkins said.

‘‘Un­for­tu­nately, mar­ket con­di­tions, in­clud­ing tougher com­pe­ti­tion from cheaper im­ports, has put pres­sure on the busi­ness’ prof­itabil­ity in the short term.

‘‘The need to im­pair SPC’s car­ry­ing value was care­fully con­sid­ered and we be­lieve it is pru­dent given these head­winds.

‘‘Our joint in­vest­ment pro­gram with the Vic­to­rian Gov­ern­ment is ex­pected to be com­pleted this year.’’

Coca-Cola Amatil will shut down its South Aus­tralian man­u­fac­tur­ing plant as the soft drink maker con­tin­ues re­shap­ing to face a chang­ing and in­creas­ingly com­pet­i­tive Aus­tralian mar­ket­place.

The com­pany made the shock an­nounce­ment that it will close its The­bar­ton plant in cen­tral Adelaide in 2019, cost­ing about 180 jobs, as it booked a 37.4 per cent drop in an­nual net profit for 2016 to $246.1 mil­lion.

Ms Watkins said the com­pany had to in­vest in grow­ing in new mar­ket seg­ments as more con­sumers turned away from full su­gar soft drinks.

‘‘We want to in­vest in our sup­ply chain so that we can play more strongly in the cat­e­gories that are grow­ing such as dairy, juice and the pre­mium glass end of the bev­er­ages spec­trum,’’ she said.

SPC con­tin­ues to face tough com­pe­ti­tion from im­ported prod­ucts but Ms Watkins said CCA re­mained com­mit­ted to se­cur­ing SPC’s fu­ture.

‘‘We see a strong fu­ture for SPC as it con­tin­ues to ex­pand its range of prod­ucts and ex­plore new mar­kets,’’ she said.

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