Shepparton based fruit processor, SPC, has dragged down parent company's profit result, according to an annual report.
The canner has been unable to record a profit in recent years and this year SPC contributed a ‘‘modest’’ loss to its parent company, Coca-Cola Amatil.
The slide in headline profit was due to a $171.8 million after tax write-down on its SPC fruit processing and canning business.
CCA paid $523 million for SPC Ardmona in 2005, when it was turning over about $351 million annually.
Its assets were valued about $595 million, net in 2005.
CCA managing director Alison Watkins said SPC had continued to progress its program to modernise the business, however continued pressure in core traditional categories resulted in a modest loss for the business.
CCA has written down the value of SPC to $156 million.
‘‘The SPC team has worked hard to deliver on its investment plan objectives and has made significant progress in modernising the manufacturing capabilities to enable us to shift into more profitable snacking products,’’ Ms Watkins said.
‘‘Unfortunately, market conditions, including tougher competition from cheaper imports, has put pressure on the businesses’ profitability in the short term.
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