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CCA reveal COVID-19 hit

Coca-Cola Amatil has revealed the toll COVID-19 restrictions have had on sales.
Providing a business update for April and the first three weeks of May, CCA said the effect of lockdown measures across the peak trade periods of Easter, ANZAC Day and Ramadan festivities resulted in a 33% decline in the volume of non-alcoholic, ready to drink beverages sold.
There was some better news with trade showing signs of recovery in May, which was down 26% on volume sales, in line with an easing of restrictions.
Group Managing Director at CCA Alison Watkins said the April results continued the volatility seen in their last update, when the pandemic had only just begun to take effect.
“Since 1 April 2020 we have traded through the tighter COVID-19 lockdown restrictions, whilst simultaneously cycling the traditionally peak Easter and Ramadan trading periods.  With many customers remaining closed or operating at significantly reduced capacity, there has been unprecedented disruption to trade,” Ms Watkins said.

“Despite these challenges, our business has demonstrated resilience and the ability to partially mitigate the adverse impact of the disruptions through our flexible routes to market, diverse channels, disciplined financial management and the strength of our brands. As the lockdown restrictions begin to ease and local economies begin a protracted recovery, we are seeing signs of modest improvement in trading conditions.”

Ms Watkins added while revenue declined in line with volume in April, the impact on Group margin percentages was greater, reflecting marked shifts in channel and package mix in Australia. For on-the-go, volume was calculated at a 55% decrease, while in grocery it was down just 10% compared to April 2019.

CCA has warned economic recovery will ‘take time’ and said they will share a clearer outlook in their half year results, due in August.

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