A standout performance by sports drink Powerade during a long hot summer drove the profits of Coca-Cola Amatil higher in New Zealand to a record.
The Australian soft drinks company reported an 11 percent rise in earnings before interest and tax (ebit) to $A38.2m ($NZ47m) in its New Zealand/Fiji region in the six months to June 30 from a year ago.
This was more than the 10 percent increase in ebit in Australia over the same period. The rise was even more in New Zealand Dollar terms.
"Despite the softening New Zealand economy, the New Zealand business delivered a record result for the first-half with the ebit in local currency terms increasing by 18.1 percent on volume growth of 3.4 percent," the company said.
The ebit margin in New Zealand rose 2.1 percentage points to 18 percent.
The company attributed the profit increase to a long hot summer in New Zealand and its ability to recover commodity-driven increases in its costs.
"Powerade was the standout performer for the half-year, growing by over 15 percent as a result of the launch of Powerade Edge and Recovery," the company said.
The Coca-Cola brand increased volume by 6 percent with more people buying the drink in six packs in grocery stores.
The new Relentless energy drink launched in May has captured more than 10 percent of the market in the grocery channel despite strong competition.
The company said it is getting synergies from operating a trans-Tasman business, reducing costs. It opened a $80m semi-automated distribution centre in New Zealand in November on budget.
"This project will generate material efficiency savings and will significantly enhance New Zealand's customer service capability."
The group's overall net profit before one-offs rose 7 percent to $A171.9 million in the six months to June from $A160.9 million a year earlier. Four analysts on average had expected a net profit of $A169.4 million, according to Reuters Estimates.
The group, which also sells alcoholic drinks, bottled water, canned fruits and jams, said it still expected high single-digit growth in earnings before interest and tax in the second half before one-offs, with a target of around 7 percent EBIT growth.
Shares in Coca-Cola Amatil, 30 percent owned by the Coca-Cola Co, have fallen 16 percent so far this year.