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Australia's Coca-Cola Amatil says can recover costs

Tue Feb 12, 2008 11:02pm EST
 
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MELBOURNE, Feb 13 (Reuters) - Australian soft drinks firm Coca-Cola Amatil Ltd (CCL.AX: Quote, Profile, Research, Stock Buzz) said on Wednesday it expected to be able to pass on higher commodities costs in the form of higher prices, even if the economy slows this year.

Managing Director Terry Davis said an expected increase in input costs of 3-4 percent this year was at the low end compared with many other food and drinks makers.

"That gives me some confidence we'll be able to pass those through," Davis told Reuters in a telephone interview.

He also said the company was likely to focus on organic growth rather than making major acquisitions -- even though high industry multiples had become more reasonable in the current market downturn.

"We've got enough on our plate over next 12 months to not have to worry about that," Davis said. ($1=A$1.11) (Reporting by Victoria Thieberger)

 

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