AUS: Rising malt prices to hit Foster's going forward? - analyst
Credit Suisse has trimmed back its earnings forecast for Foster's Group.
The bank said yesterday (5 June) that a stronger Australian dollar, couple with rising malt costs, should lead to earnings for the year to June 2008 coming in 5.4% down on its earlier earnings estimate. Credit Suisse believes next year's earnings will reach A$767.3m (US$639.4m) with 2009 coming in 6.5% down at A$840.8m.
The forecast was based on an assumption that the Australian dollar level would be around US$0.84, up from the previous estimate of US$0.81.
A drought in Australia will lead to higher malt costs in the domestic beer business, the bank noted. "With currency moves potentially erasing US growth, we now view an Asia-Pacific division recovery as the main share price driver," said analyst Larry Gandler at Credit Suisse.
In February, Foster's posted a 3.5% year-on-year rise in sales for the six months to 31 December, coming in at A$2.4bn. Net profit was up 90% to A$533.4m thanks, in part, to last year's brewery sales in Vietnam and India. Excluding significant items, however, earnings rose only 11% to A$363m.
Lion Nathan has secured a deal to buy J Boag & Son from San Miguel Corporation....
Foster's Australian and Lion Nathan sales data has been "consistent with forecasts", according to a recent survey....
Foster's Group has responded to a suggestion from investment bank Merrill Lynch that it should split its beer and wine operations by saying it had no intention to do so but would keep all options "und...
Foster's Group has indicated that the appreciation of the Australian dollar will "remain a drag on earnings growth"....
Investment bank Merrill Lynch has suggested breaking up the Australian drinks group Foster's to restore shareholder value because its wine division is underperforming....
Inertia Beverage Group has appointed a marketing veteran to the new position of vice president of marketing....
Foster's Wine Estates has launched the first Australian-imported and 100% grape-based vodka to the US market....
- Brown-Forman's march on premium whisk(e)y -Comment
- Are consumers getting tired of consuming?
- Where does AB InBev see the future of beer?
- SABMiller in Cent'l & E Europe - What is for sale?
- Interview - Harviestoun Brewery MD Toby Knowles
- Brown-Forman to buy BenRiach Distillery Co
- Bacardi rolls out new global Martini ad - video
- Brown-Forman appoints new GTR marketing head
- Guinness Nigeria sees YTD sales, profits tumble
- Bacardi recruits ex-News International exec
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Consumer and Market Insights: Wine Market in China
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Emerging Drinks Industry Trends