(Reuters) - Australia's Coca-Cola Amatil <CCL.AX> said on Wednesday it was looking into the potential sale of its fruit and vegetable packaging unit after the loss-making business contributed to a drop in its first-half revenue.
The bottler bought the unit, SPC, for around A$700 million (US$510 million) in 2005 and is reviewing its options following the end of its four-year joint investment of A$100 million into the unit with the Victorian government.
Coca-Cola Amatil reported a nearly 13 percent jump in first-half net profit on Wednesday, but total revenue fell slightly due to weak trading revenue for its corporate food and services segment, to which SPC belongs.
Shares of Coca-Cola Amatil jumped 5.8 percent in morning trade, while the S&P/ASX 200 index <.AXJO> was slightly weaker.
"The review will look at how this growth could be unlocked, potentially through a change in ownership, alliances or mergers," said Alison Watkins, managing director of Coca-Cola Amatil.
Coca-Cola Amatil cited rising competition and the exit of some private labels from SPC as factors contributing to a 4 percent fall in the unit's trading revenue.
It said the review would not affect its ongoing sale process relating to the Taylors and IXL brands, announced in early 2018.
(Reporting by Nikhil Kurian Nainan in Bengaluru; editing by Richard Pullin and Chang-Ran Kim)
