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CCA puts fizz in forecast
The West Australian CCA puts fizz in forecast

Coca-Cola Amatil increased full-year profit 10.8 per cent as the local bottler of coke said it had made a solid start to calendar 2011.

Net profit rose to $497.3 million for the 12 months to December 31 compared with $449 million in the prior corresponding period, Sydney-based CCA said in a statement.

Shares in CCA rose 1.4 per cent on a day the broader market declined.

Revenue rose 1.2 per cent to $4.49 billion.

"Notwithstanding the continued softness in consumer spending, the Australian business has made a solid start to 2011 with volume and revenue growth ahead of last year in all states except Queensland," CCA chief executive Terry Davis said in the statement.

"We have a pipeline of high returning capital projects that will deliver efficiency, service and revenue gains right across the business."

Mr Davis said 2011 would be a peak year for capital projects with an overall spend of about $400 million on capacity and capability improvements. That would include about $100 million to be spent in Indonesia on capacity expansion.

The company said it expected the beverage cost of goods sold per unit case to increase by 3.5 to four per cent as commodity prices gained.

CCA had the majority of commodity and currency hedges in place and manufacturing efficiency gains were likely to offset most of the cost increases.

CCA declared a final dividend of 28 cents per share, fully franked.

The shares rose 29 cents, or 2.55 per cent, to $11.66 at 7.55am, as the benchmark S&P/ASX 200 index declined 0.4 per cent.