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Australasian brewer Lion Nathan posted a 3.8 per cent rise in full year operating earnings before interest and tax (ebit) at its New Zealand business to $90 million.
The New Zealand beer market proved to be resilient, achieving small growth of 0.3 per cent in a year where economic conditions were challenging, the company said today.
In Australian dollar terms, the operating ebit was just down 0.1 per cent to A$76.2m, reflecting the impact of a weaker New Zealand dollar.
Lion Nathan said weather conditions had affected demand in this country.
"The market benefited from an unusually hot summer which boosted volumes in the first half, but this was offset by an abnormally wet winter."
Lion Nathan said it achieved domestic beer volume growth ahead of the market at 0.5 per cent, with domestic beer revenue up 6 per cent.
Net sales revenue for the year to the end of September in New Zealand were down 1.5 per cent in NZ dollar terms to $575.4m, while in Australian dollars it dropped 5.2 per cent to A$487.2m.
New Zealand beer operations increased ebit by 10.8 per cent. The premium segment increased volumes by 29.5 per cent, including Steinlager Pure volume up 300 per cent for the full year and 143 per cent in the second half.
Wine volume was up 5.9 per cent on the previous year, while spirits/RTD volume rose 22.2 per cent.
Much of the growth in the spirits/RTD came from new products in the RTD segment, while the spirits portfolio was affected negatively by discounted parallel imports on key brands and the loss of distribution contracts for Moet Hennessy, the company said.
While the pricing environment in this country remained challenging, net sales revenues for beer, wine and spirits/RTD was up 3.4 per cent. The major impact leading to the 1.5 per cent fall in overall New Zealand net sales revenue was the loss of contracts at CBC.
Building of new production facilities in East Tamaki, Auckland was on target, with the first brew from the new brewery expected in the fourth quarter of the 2009 calendar year.
"The return to growth at an operational level (in New Zealand) has been accomplished through successful innovation and a `one-business' approach covering beer, wine, spirits and RTDs."
The business was looking to generate a further modest increase in operating ebit in 2009.
Reported ebit from the New Zealand operations fell 25.7 per cent to to $90m, but the previous year's result of $121.2m had included $34.5m in significant items including profit on the sale of the company's Newmarket brewery site.
Overall, Lion Nathan, which has made an A$8 billion play for Coca-Cola Amatil, reported a 3.3 per cent fall in net profit to A$272.7m for fiscal 2008.
Its operating net profit was A$278.3m, up 4.2 per cent, as beer volumes grew. Revenue was up 6.5 per cent to A$2.09 billion in fiscal 2008.
Australian volumes grew by 32 million litres, or 4.6 per cent during the financial year to September 2008.
Excluding boutique brewer J Boag & Son, bought during the year, beer volumes grew by three million litres, or 0.5 per cent, while the market increased volumes by 0.1 per cent.
- NZPA
