Coca Cola planned to build a new factory in Indonesia as it confirmed $63 million investment for the construction of the building during the inauguration of new production lines of the company at the Cikedokad Plant in Bekasi.
Coca Cola Amatil Indonesia CEO Kadir Gunduz explained that production opportunities and marketing are expected to widen through the newest project of the company in Indonesia. He also confirmed that the center of distribution will operate approximately during the fourth quarter of 2016.
Beforehand, Coca Cola Company has invested around $500 million to expand its production system, cold beverage procurement infrastructure and warehousing in Indonesia. Indonesia has been considered as one of the largest market for Coca-Cola despite slower economic growth.
Alison Watkins, Managing Director of Coca-Cola Amatil, said that Indonesian business delivered solid volume growth and strong market share gains, amid the slow economic growth which affects the over-all purchasing power.
According to the 2015 financial report released by the Coca Cola Amatil in Australia, the non-alcoholic beverage sales in Indonesia and Papua New Guinea climbed by $774.13 million or 19.8 percent in 2015, increasing significantly from the 8.77 percent recorded last 2014.
Amid the latest investment of Coke, Industry Minister Saleh Husin expressed his optimism with the project. He reiterated that beverage industry helps drive the economy from production, capital investment and employment.
Meanwhile, it was reported a few days ago that Coca-Cola made a disinvestment after the 25 percent decline of the consumption of sugary soda in the United States for the last 20 years as the concern for obesity was linked to too much consumption of soda.
Futher to this, the beverage manufacturer might lessen its employees from 123,000 individuals down to 39,000 globally then it might go back in producing concentrated coke.
The disinvestment was seen as a repeated strategy of the firm over the past decades. Getting rid of stocks, bonds or investment funds which are found to be unethical or morally ambiguous is just one of the strategies which could be effective for companies which seek for money.
Elsewhere, shares of Coca Cola went down by 0.20 points or 0.43 percent to trade at $46.38 during the last session. The stock opened at $46.25 with an intraday high of $46.88 and low of $46.32. It has a market capitalization of $201.20 billion and a price earnings ratio of 27.8 with a dividend yield of 3.02 percent. The American beverage company has a 200-day moving average of $42.61 and a 50-day moving average of $44.57.
Currently, the company has an average rating of Hold and a consensus price objective of $46.93. It is set to disclose its quarterly earnings on April 27 whereas an EPS of $0.44 is expected from the prominent multinational beverage corporation.
Coco-Cola company was expected to have a huge improvement in short interest in the end of March. The short interest growth of the company last February was at 15.2 percent or a total of 35,210,253 shares. In mid of March, the short interest was already 40,552,440 shares and based on the recent reports around 0.9 percent of the company are sold short.