Nov. 4 (Bloomberg) -- Coca-Cola Amatil Ltd., Australia’s biggest soft-drink maker, affirmed its forecast that second-half net income will expand as domestic demand strengthens and earnings from Indonesia improve.

Earnings will post “high single-digit” growth in the six months ended Dec. 31, Sydney-based Coca-Cola Amatil said in a statement today. Growth of 9 percent, near to the top of that range, would imply net income of A$232.9 million ($210 million) in the period, according to Bloomberg calculations based on the year-earlier result of A$213.7 million.

Price increases will limit the impact of higher ingredient costs as Chief Executive Officer Terry Davis spends an extra A$45 million producing his own plastic bottles at the company’s Sydney plant. The Australian dollar’s climb to a 14-month high may cut annual net income by about 1 percent, the beverage producer said.

“In recent years the company has consistently beaten its guidance,” Andy Bowley, an analyst at Citigroup Inc., said in a note to clients today. “We remain confident in our second-half net profit growth estimate of 12 percent,” wrote Bowley, who maintained his “hold” rating on the stock.

Coca-Cola Amatil shares fell 2 cents to A$10.26 at the close of trading in Sydney, paring this year’s gain to 12 percent. That compares with a 22 percent gain in the benchmark S&P/ASX 200 index. The company is 30 percent owned by Atlanta- based Coca-Cola Co., the world’s biggest soft drink maker.

Australian sales are being stoked by new products such as flavored milk, and market-share gains for products such as Glacéau Vitaminwater and Mother energy drinks.

“This guidance assumes a normal summer trading season in Australia and New Zealand in November and December, as these two months account for approximately 20 percent of trading revenue,” the company said. “Coca-Cola Amatil’s strong first- half trading performance has continued during the third quarter with good revenue and volume growth.”

To contact the reporter on this story: Robert Fenner in Melbourne rfenner@bloomberg.net

Last Updated: November 4, 2009 01:46 EST