Coca-Cola loses fizz as profit slumps

CCA made a net profit of $459.9 million in the year to December 31. Picture: File Source: Getty Images

BEVERAGE company Coca-Cola Amatil's (CCA) annual profit has fallen by 22 per cent as it deals with weak consumer spending and the high Australian dollar.

CCA made a net profit of $459.9 million in the year to December 31, down from $591.8 million in the previous corresponding period.

The result included $98.5 million in writedowns, related to its SPC Ardmona business, which has struggled to compete against supermarket labels and imports due to the high Australian dollar.

CCA's net profit before significant items was $558.4 million, up five per cent from $532 million in the prior corresponding period, in line with the company's previous forecasts.

Managing Director Terry Davis said volume and earnings in the company's Australian business was solid given a difficult trading environment.

"Earnings growth was moderated by disappointing performances from New Zealand and SPC Ardmona, with the ongoing impact of the high Australian dollar on the competitiveness of SPC Ardmona leading to a writedown of assets and goodwill in the business," he said in a statement.

Earnings in Australia rose 3.3 per cent from the corresponding period to $627.4 million, while earnings in New Zealand and Fiji dropped 12 per cent to $70.1 million.

The company's operations in Indonesia and Papua New Guinea posted earnings growth of 17 per cent on the previous corresponding period, to $103 million.

Significant investments had been made in those countries in anticipation of a new product and package pipeline in 2012, CCA said.

Mr Davis said Australian revenue and earnings were expected to grow in 2013.

"We do, however, remain concerned by the generally weak consumer spending environment which has persisted for the last two years," he said in a statement.

Momentum in PNG and Indonesia would continue in 2013, with revenue there expected to exceed $1 billion for the first time.

The company's expenditure is forecast to reduce from peak levels in 2012, to an average of $350 million to $420 million each year over the next three years.

CCA declared a final dividend of 32 cents per share, franked to 75 per cent.

It will also pay a special dividend of 3.5 cents, taking total dividends for 2012 to 59.5 cents.

View the original article here

Austereo loses $2.8m over prank call

Speaking about when they first found out about the tragedy that followed their prank call, the 2Day FM hosts broke down on A Current Affair. Vision courtesy of Channel 9.

• 2DayFM DJs impersonated Queen and Prince Philip
• "Hot 30 Impact" was $2.8 million to station owners
• Video: Prank call DJs weep for nurse's family

THE prank hospital call to the pregnant Duchess of Cambridge by Sydney's 2DayFM cost the radio station's owners $2.8 million in lost profit.

Southern Cross Austereo (SCA) said the prank call where the Queen was impersonated (scroll down to listen to the prank call) to the hospital where the Princess of Cambridge was had a $2.2 million hit to revenue and added $1.4 million in expenses.

Nurse duped by Southern Cross Austereo DJs found dead

SCA did not give a breakdown of the net profit effect but said there was an 0.4 cent decline to earnings per share due to the .

The figure translated into a $2.8 million hit to first half net profit, which SCA reported as falling 52 per cent to $45.1 million.

Nurse Jacintha Saldanha with her family.

2DayFM announcers Michael Christian and Mel Greig were suspended and their Hot 30 program cancelled after they made a prank call in December to London's King Edward VII Hospital posing as the Queen and Prince Charles.

Nurse Jacintha Saldanha, who took the call at the hospital, was later found dead in a suspected suicide.

Hoax nurse's mother inconsolable and says no contact from radio station

SCA chief executive Rhys Holleran today said the company had "put our processes under the microscope" in response to what he described as an "unforeseen tragedy".

Royal prank: Invasive Aussie radio hosts Mel Greig and Michael Christian. Picture: AFP Photo / Southern Cross Austero

"We are reasonably happy with what we have seen and we have seen some areas where we think we can do better than we previously did," he said.

SCA said any continuing financial effect would be immaterial and that the broadcaster's radio brands remained strong with audiences.

"We have done a lot of research into our own brands and I think with our own audiences and we just wrapped that up recently and they seem to be in pretty good shape," Mr Holleran said.

SCA suspended advertising on 2DayFM in December after a public backlash over the prank call, as major retailers such as Coles and Telstra pulled their advertising from the station.

The 2DayFM DJs who prank called a UK hospital enquiring after the Duchess of Cambridge will not be charged.

Mr Christian has since returned to the airwaves, while Ms Greig was expected to return at a later date.

2Day FM hosts Mel Greig and Michael Christian were given details of the Duchess of Cambridge’s condition after making a prank phone call to the hospital where she is being treated for acute morning sickness.

View the original article here