AUS: "Slower" US drags on Foster's Group H1
Foster's Group has posted a comparative lift in first half net profit, as a "slower US wine market" held sales flat for the period.
The Australia-based drinks company said today (19 February) that net profit for the six months to the end of December was up by 6% year-on-year before significant items, coming in at A$398.6m (US$367.2m). Factoring in significant items, in particular the sale of Foster's breweries in India and Vietnam in the previous period, net profit attributable to Foster's shareholders came in 28% down on the A$553.5m reported in H1 2006.
Net sales for the period slipped, meanwhile, by 0.5% to A$2.36bn, with the Americas region seeing sales fall by 32.2% to A$98.3m.
Sales in Australia, Asia and Pacific were up by 14.1% to A$515.5m, meanwhile, with Europe, Middle East and Africa delivering sales growth of 16.5%, totalling A$45.1m.
"A shift toward premium products, improved pricing outcomes and the realisation of efficiency benefits contributed to solid first half growth in earnings", said company CEO, Trevor O'Hoy. "Performance in Australia, Asia, Pacific and Europe was strong, with improved product mix, revenue growth and cost performance.
"However our North American earnings were impacted by exchange rates, a slower US wine market in November and early December, a decline in merchandising effectiveness and a planned change in mix."
Looking forward, O'Hoy warned that the US business would remian "challenging", although the Americas division is still expected to return to constant currency earnings growth in the second half. ""We make great wine and have some wonderful global wine brands, but we are yet to make it a great business" he said. "The Foster's management team and I are united in our resolve to grow wine returns, and remain absolutely committed to driving shareholder value."
Exports of Australian wine fell in both volume and value for the year up to July, the country's national wine body has said....
Origin Wine has secured the appointment of Foster's to handle the sales and distribution of its Fairhills wine portfolio in the UK impulse and convenience sector....
The runners and riders are lining up to buy Cadbury Schweppes' Australian soft drinks unit, should it be put up for sale....
Foster's has been slapped with a fine following the death of a worker at one of its breweries in Australia....
Molson Coors has posted a marked drop in profits for the first half of this year, as one-off charges made their presence felt....
The top ten most visited stories on just-drinks this week:...
The CEO of Foster's Group is set to leave the Australian company today (21 July)....
This week InBev and Anheuser continue to keep the pages ticking over on just-drinks. Amongst the other stories at the top of the most read pages were reports on C&C, an interview with Carlsberg's CEO ...
- Is Diageo on the Brink of a Brain Drain?
- SABMiller edges Diageo as beer trumps spirits
- Stagnant wine growth a concern for Constellation
- Comment - Heineken's move for Pivovarna Lasko
- Will Keurig Kold come to Coca-Cola Co's Rescue?
- Rémy Cointreau eyes recovery after Q4 bounceback
- Chateau Bastor-Lamontagne's So Sauternes
- Bacardi cuts jobs at Global Brands unit
- Carlsberg exec joins Diageo as Africa chief steps
- Diageo targets Millennials with DeLeon ads