CCA says SPC could be sold
According to AAP, CCA group managing director Alison Watkins announced a review of SPC at the company’s half-year profit results on Wednesday – saying a sale, partnership or merger are among options to be considered.
“We believe there are many opportunities for growth in SPC, including new products and markets, further efficiency improvements, and technology and intellectual property,” Watkins said in a statement. “Importantly, there are no plans to close SPC. We see a positive future for SPC as it continues to transform its operations.”
Shares surged to a 16-month high following the news, as well as the lift in profit at its half-year results.
CCA posted a 12.8 per cent increase in half-year profit, due to its double-digit earnings growth in alcohol and coffee sales and strong performances in New Zealand and Fiji. It made $158.1 million in statutory net profit, up from $140.1 million a year ago, while trading revenue was little changed from a year earlier, at $2.39 billion. The company announced a partially-franked interim dividend of 21 cents, unchanged from a year ago. CCA shares were up 20 cents, or 2.1 per cent, to $9.72 at 1026 AEST, according to AAP.
CCA also announced on Wednesday that it is extending a Master Supply Agreement for the distribution of the Caffitaly machine and coffee capsule in Australia. This comes after the soft drinks giant ventured into expanding the Grinders Coffee brand in Indonesia.
“The popularity of the in-home coffee experience has risen dramatically over the past 10 years, driving an exponential rise in coffee machine ownership. The Caffitaly system is a well-established player in the home coffee capsule market, which is in significant growth in Australia. The partnership with Grinders Coffee, a respected café-quality coffee brand, will accelerate future growth through a new range of machines and Grinders-branded capsules,” said Craig Fishburn, CCA International Coffee general manager.