The Australian beer and wine group, Lion Nathan, posted net profit for the first half of the fiscal year of A$110.3m, up 10% on the first half last year. But while the group reaffirmed its forecast for the full year, it said this would depend on how the SARS epidemic affects Chinese beer sales.
“Assuming that trading conditions do not change significantly and the SARS outbreak does not materially impact Lion Nathan China’s second half volumes, Lion is comfortable that it will be able to deliver on its guidance of net profit (from operations) for the full year of A$180 million – an 11% increase on last year,” the company said.
Group sales were 5.9% up at A$927.4m in the six months to March 31, 2003. Earnings from Lion’s Australian brewing operations rose by 3.5%, contributing A$184.7m to group EBITA of A$231.4m which was 12% higher. Its New Zealand brewing subsidiary saw a 19.7% rise in EBITA to A$51.7m.
Lion Nathan also said its Chinese operation is on track to reach break-even point in EBITDA terms, on the back of strong volume growth. In the first half, its Chinese activities turned in an EBITA loss of A$7.5m, against a loss of A$12.2m in the first half last year.
