AUSTRALIA: Lion Nathan profits soar in H1
Lion Nathan has posted a leap in profits for the first half of this year. The Australian brewer today (18 May) reported a 52% rise in first-half profits to A$127.6m (US$96.4m), which it described as a solid result in a competitive market. Australia's second largest brewer announced first-half earnings per share of A$0.239, up from A$0.157 in the first half of last year.
Although the earnings growth was achieved in the face of falling domestic beer demand and increased competition from market leader Foster's Group, the result was slightly below market forecasts which were anticipating net profit of around A$131m. A first-half dividend of A$0.15 was declared, up from A$0.14 in H1 last year.
The company, which includes the Tooheys, James Squire and Steinlager brands in its portfolio, anticipates that those prevailing difficult conditions will prevail in the second half.
"The Australian beer business performed well in a competitive market with volume and value growth in core brands," said chief executive Rob Murray. Full-year profit forecast before one-off items would remain in the range of A$230m to A$235m, compared with A$202.7m a year earlier, he added.
First-half turnover at Lion Nathan, which is 46%-owned by Japan's Kirin Brewery Co., was 2.4% down at A$958.1m. The Australian beer business recorded a 5.8% rise in EBITA to A$210.7m, in spite of tough market conditions.
In New Zealand, a fall in beer demand and strong price competition, particularly leading up to Christmas, contributed to an earnings decline of 8.8% to NZ$46.4m, the company said.
Earnings at the company's wines and spirits division were 22% down at A$7.6m. However, when a A$1.5m charge in respect of self-generating and regenerating assets is stripped out, the company said this segment's earnings grew by 3.4% to A$9.1m.
Turnover was down by 8% in the group's Australian wine division, with demand moving towards premium wine, the company said. During the first half, Lion Nathan received a cash boost of A$91.8m, the net proceeds from the sale of its unprofitable Chinese beer subsidiary.
After some less than successful diversification in recent years, Lion Nathan is focusing its attentions back on beer and winning the approval of analysts in the process. The company looks set to gain ...
Integrating spirits, wine and beer has proved problematic for major drinks groups over the years but expansionary moves by the two major Australian brewers, Foster's Group and Lion Nathan, suggest tha...
Lion Nathan has returned to court in its long-running battle with takeover target Coopers Brewery....
Lion Nathan has appointed a new non-executive director....
Coopers Brewery is fighting the takeover attempt from fellow Australian brewer Lion Nathan....
Lion Nathan today announced that it intends to make an off-market offer for Coopers Brewery Ltd (Coopers). The offer of A$260 per share in cash values Coopers at A$352m....
Lion Nathan has received further assurances that it is not about to be taken over....
Lion Nathan has played down speculation that it may be the subject of a takeover....
- Are we kidding ourselves over craft spirits?
- What's behind Brown-Forman's Irish whiskey plans?
- Is Brown-Forman doing a Jack Daniel's in Ireland?
- How good a sustainability fit are ABI and SAB?
- Interview - Heineken global activation director
- Diageo, Treasury Wine Estates quiet on wine sale
- Chandon to become "third pillar brand" for MH
- Brown-Forman silent on Southern Comfort report
- Pay freeze anger threatens Carlsberg UK site
- Stoli appoints international marketing director
- The IWSR Duty Free/Travel Retail Report 2015
- Future growth opportunities for global spirits
- Global gin insights - market data, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research