E-Malt.com News article: 3131

Lion Nathan said it was on track to deliver a full year net profit from operations, prior to one time items, of between $195 million and $200 million.

This will represent an increase of between eight and 11 per cent on the result for the 2003 fiscal year.

Total beer volumes for the group, excluding licenced XXXX volume in the United Kingdom, increased by seven per cent to 261 million litres for the quarter.

In Australia, volumes were marginally behind the same period last year - reflecting lower overall market volumes for the quarter - but flat relative to the prior year on a year to date basis.

Lion Nathan said the business was experiencing strong pricing and a shift to higher margin brands.

Going into the final quarter, the Australian beer business is expected to benefit from a further price increase, effective August 1.

In New Zealand, a successful June price increase has had a positive impact on margins, although volumes were down on last year, Lion Nathan said.

It said neither the Australian nor the New Zealand beer business experienced any unexpected cost pressures in the quarter.

Volume growth for the China beer business was strong going into the peak summer months.

"However, the Yangtze River Delta beer market remains competitive with the business continuing to experience some cost pressures," the company said.

Lion Nathan Wines and Spirits Groups wine shipments declined to 195,000 cases primarily as a result of the earlier decision to reduce its exposure to unprofitable segments of the export market.

Despite that volume decline, underlying profitability improved with better financial performances across all the Wine and Spirits major operations


23 August, 2004