DENMARK: Harboes profit slide fails to halt investment
Harboes Bryggeri is lining up some investment for next year, despite warning that its profits are due to take a hit.
The Danish brewery group, which said late last week that 2006/2007 pre-tax profit will come in around DKK10m below initial forecasts, will spend around DKK300m (US$52.8m) over the next 18 months.
Between DKK150m and DKK170m will be spent during the next four months, Harboes said, on, among other things, a new bottling line at its German subsidiary Darguner Brauerei, which will begin production in the spring, the company said.
The remaining money will be invested throughout the rest of the group's next fiscal year.
Harboes also confirmed that it will enter the fresh juice market, with a marketing plan being drawn up for the spring and summer of next year.
At the same time, the company warned that pre-tax profit for the year to 30 April will come in between DKK100m and DKK110m, against early forecasts of DKK110m and DKK120m.
In July, the company reported a slide in earnings for its 2005/2006 fiscal year, which came in at DKK98.9m from DKK136.7m a year earlier. Net turnover for the year was also down, to DKK1.36bn from DKK1.45bn.
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