AUS/NZ: Lion Nathan sales up in year so far

By | 24 July 2008

Lion Nathan has posted a lift in sales for the first nine months of its current fiscal year, driven mainly by its purchase of J Boag & Son in January.

The trans-Tasman drinks company said in a trading update today (24 July) that sales in the nine months to the end of June were up by 7% on the corresponding period a year earlier.

In Australia, beer volumes grew by 3.7% to 550m litres , although, excluding the Boag portfolio, beer volumes in the country were flat, up by only 0.3%. A wet summer on the east coast of Australia was blamed for the static performance.

In January, Lion Nathan, which is 46%-owned by Japan's Kirin Holdings, completed the purchase of Australian brewer Boag from San Miguel for A$325m (US$302.8m). The company said that the Boag portfolio is now fully integrated into the Lion Nathan Australia business and that sales results to date are "encouraging".

In New Zealand, beer volumes were up by 1.8% on the corresponding period a year earlier at 129m litres. Volume growth slowed in the third quarter after a strong start to the fiscal year due to "an abnormally warm summer period" in the country.

Lion Nathan Wine Group volumes were up by 6.8%, despite lower than forecast sales to the US following the sale of distributor Beam Wine Estates to Constellation Brands. The company said its transition to a new distribution platform in the US was completed on 1 July, with all sales to the US now being facilitated by Lion Nathan USA. "Market conditions continue to present challenges to the wine industry, with currency levels and lower consumer spending particularly in the US and UK, impacting upon international growth expectations," the company warned.

"Our business has been able to grow both volume and revenue during arguably more difficult economic conditions during the last nine months," said company CEO, Rob Murray. "It is pleasing to see the investments we have made in our brands, our breweries and our people translating into strong results. We expect to see further upsides from these investments as we step up our earnings in 2009."

Looking forward, Lion Nathan confirmed its guidance for NPAT of between $265m and $275m for the 2008 financial year, including the previously advised Boag's one-time item.

Sectors: Beer & cider, Wine

Companies: Lion Nathan, Kirin, Constellation

View next/previous articles

Currently reading -

AUS/NZ: Lion Nathan sales up in year so far

Currently reading -

Focus - UK lawmakers look to rein in drinks companies

There are currently no comments on this article

Be the first to comment on this article

Related articles

UK: Drinks industry unites for tax freeze

Wine, beer and spirits sectors in the UK have united to press the government to abandon its plans for more duty tax rises this year.

just the round-up - The week in drinks

The top ten stories published on just-drinks this week:

US: Constellation Brands looks to Californian sun for energy

Constellation Brands has installed what it claims to be the world's largest winery solar energy system.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page