Coca Cola Amatil reveals $190m virus hit

Coca-Cola Amatil says it will write down the value of its Indonesian assets by between $160 million and $190 million as a result of the COVID-19 pandemic.

“These expected impairments are non-cash accounting adjustments and we remain very confident about the long-term prospects for our Indonesian business,” managing director Alison Watkins said.

The beverage giant said its overall trading volumes in June were down 9 per cent compared to a year ago, resulting in a second-quarter volume decline of 23 per cent compared to 2019.

In New Zealand, which has significantly eased restrictions, June sales were up 4 per cent compared to a year ago, while in Australia sales were down 3 per cent in June.

In Indonesia, where infection rates remain high, June volumes were down 23 per cent year on year, Coca-Cola Amatil said.

The company has previously reported a 40 per cent decline in volumes in Indonesia in April and May.

But sales have shifted to grocery stores, rather than the higher margin on-the-go channels that have been hardest hit by the lockdowns.

“The impacts of the pandemic are continuing to evolve with the situation fluid across all of our markets,” Ms Watkins said.

Coca Cola Amatil shares were up 5.4 per cent to $8.97 at 11.55am.

AAP