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Lion Nathan says it is happy with modest first-quarter increases in its New Zealand wine and beer sales.
New Zealand's largest brewer, whose brands include Speights and Steinlager, said beer volumes for the quarter ended December 31 rose 1.7 per cent to 53 million litres, due to premium volume growth. On-tap volumes fell, reflecting market trends.
Beer volumes had risen 0.5 per cent over the previous financial year.
The company did not give quarterly revenue figures.
"Certainly, the performance from the New Zealand businesses is encouraging," said spokesman James Tait.
"There's been very little revenue growth in the market, it's been an extremely competitive market and we have stated here that we've seen some moderate volume growth, so obviously that's something that we're pleased by.
"It has been flat from a profit perspective for a couple of years."
In Australia, quarterly beer volume fell by just over 1 per cent, in line with a decline in market volumes. But Australian revenue rose by about 6 per cent.
Lion's New Zealand wine business posted "solid" sales growth, particularly in its Oyster Bay, Delegat's and Riccadonna brands. Volume fell at Wither Hills, which launched a higher-value strategy this year.
The company's focus on premium-quality wine rather than larger volumes of lower-quality wine appeared to be putting it in a better position. It modestly increased its guidance for net profit before significant items for the 2008 financial year to between A$265 million ($306 million) and A$275 million. Lion Nathan shares were up 37c at $10.74.
- NZPA
