Brewer Lion Nathan has delivered a "strong" first half net profit up 6.9 per cent and says it's "well placed to thrive" in the current market environment.
Lion Nathan, currently subject to a takeover process from Japan's Kirin, forecast net profit for the full year of US$305 million ($507 million)
to US$315 million, on "robust beer market fundamentals".
The company declared an interim dividend of 22c fully franked, up from 20 cents in the prior corresponding period.
Chief executive Rob Murray said underpinning the result was a strong performance by the Australia business, which grew operating earnings before interest and tax (ebit) by 12.7 per cent to $280.3 million and net sales by 11.3 per cent.
The result was helped by gains in core brands and Boag as well as good tap beer volumes.
He said premium beer continued to be attractive as an "affordable luxury".
"The company's investment decisions over the past five years have built a stronger business, which is positioned to deliver in fiscal 2009 and beyond," Murray said.
Lion Nathan's New Zealand arm grew ebit by 3.1 per cent, despite stable domestic beer volumes, due to the success of Steinlager Pure and Speight's Summit offerings.
However, the group's wine ebit fell 55.7 per cent to $3.5 million in the half.
The group said the change in ebit for the Australian beer business and the resilience of the New Zealand business in the first half positioned it well for the full year.
- AAP
