Lion Nathan boss Gordon Cairns said yesterday that the drinks group’s wine sector is heading in the right direction in spite of a drop in earnings in the year 2002-2003.


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.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.