E-Malt.com News article: Australia: Lion Nathan National Foods reports H1 sales increase

Lion Nathan National Foods (LNNF) announced its financial results for the first half of the 2010 financial year in conjunction with Kirin Holdings' first half announcement, Flex News Food reported on August 18.

Alignment of reporting year ends to September 30 means the first half results represent a full six months for the Lion Nathan (LN) business unit* (October to March) and three months for the National Foods (NF) business unit (January to March). NF’s October to December performance was disclosed on February 10.

LNNF continues to invest in its people and a focussed portfolio of core ‘power brands’ to drive sustainable results in the long term. The business integration process continues to progress to plan.

Lion Nathan

LN delivered operating earnings before interest and tax (EBIT) of $329.1 million, an increase of 7.2%.

A solid performance from Lion Nathan Australia (LNA) underpinned this result. Net sales revenue grew 8.1% to $899 million, while volumes increased by 3.4% in a relatively flat beer market. This result was aided by the timing of Easter early in the second half, which supported strong volumes toward the end of March.

LNA’s power brand portfolio continued to grow its share of portfolio mix and now represents 83% of total volume. XXXX Gold, Australia’s second largest beer, continued its impressive growth. Hahn Super Dry also had a particularly strong summer. New innovations XXXX Summer Bright Lager and Tooheys Extra Dry 5 Seeds performed ahead of expectations. The Boag’s portfolio continues to grow, benefiting from the reach of LNA’s route to market and a significant increase in marketing investment.

Since the conclusion of the half there has been some softening in the overall beer market, consistent with conditions across many retail and fast-moving consumer goods categories, and the market has been very competitive.

Lion Nathan New Zealand (LNNZ) performed well in challenging market conditions with total revenue growing 5.3% to NZ$341.5 million. The core beer business grew revenue by 2.9% on last year realising value in a market in which volume declined overall. Steinlager Classic was a standout performer with double digit value growth, supported by a packaging refresh. The Wines, Spirits and RTD businesses benefitted from the acquisition of distribution rights for Bacardi brands and the successful launch of Mac’s Isaac’s Cider, which has driven strong cider category growth in the New Zealand market.


18 August, 2010