AUSTRALIA: Lion Nathan wine to bounce back
The wine division saw a plunge in earnings by 80% to A$4.1m in the year to 30 September. But Cairns believes that the company has the right strategy to turn around its premium wine business, and urged investors to be patient while the group worked to turn the business around.
"We're at the top end of the market, it's a very small and it's a very narrow niche, but it's a large one, there's a billion dollars of profit there available," he told the Nine Network.
Last week Lion Nathan, whose brands include Tatachilla and Preece, reported an overall rise in net profit by 11.2% to $180.1m for the year 2002-2003, and predicted a net profit climb for 2003-2004 by between 8% and 11%. The fall operating profit for the wine division was attributed to a A$6.8m writedown of inventory.
Cairns ruled out any acquisitions until the wine business improved. "Our shareholders are not out there saying go buy wine companies," he said. "We can be patient and if something comes up at the right price then we might be interested."
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...
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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....
Lion Nathan has said it is on target to reach its full-year net profit after tax forecast for 2005 of between A$230m and A$235m before one-off charges....
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