Foster's enjoys strong year

MELBOURNE - Australian largest alcoholic drinks company, Foster's Group, said its annual profit rose 27 per cent, boosted by the European sale of its flagship beer brand and its Southcorp wine acquisition.

Foster's, which also posted strong earnings from its domestic beer division, said net profit was A$1.17 billion ($1.4 billion) for the year ended June 30 from A$919.9 million a year ago.

Analyst forecasts for the company's headline profit averaged A$1.18 billion, based on 6 analysts surveyed by Reuters.

Foster's said its normalised net profit rose 15.4 per cent to A$623.1 million.

The result included the first full-year contribution from Southcorp as Foster's has expanded its international wine operations, while pulling back from the Asian and European beer markets.

Shares in Foster's, the world's second-largest wine company after Constellation Brands Inc, have eased about 2 per cent for the calendar year to Monday's close of A$5.45, while the wider market has added 5 per cent.

- REUTERS