Lion Nathan, the Australian beer and wine group, has reported a 10% increase of its net profit for the first half of the fiscal year versus the first half of the last fiscal year. Lion Nathan registered a net profit of A$110.3 million for the first half of the year. However, the group said its forecast for the full year would depend on how the SARS epidemic affects Chinese beer sales. "Assuming that trading conditions do not change significantly and the SARS outbreak does not materially impact Lion Nathan China's second half volumes, Lion is comfortable that it will be able to deliver on its guidance of net profit (from operations) for the full year of A$180 million - an 11% increase on last year," the company said.

Lion Nathan has registered A$927.4 million sales in the six months to March 31, 2003, 5.9% up in comparison to the same period last year. Earnings from Lion's Australian brewing operations rose by 3.5%, contributing A$184.7m to group EBITA of A$231.4m which was 12% higher. Its New Zealand brewing subsidiary has recorded a 19.7% rise in EBITA to A$51.7m.

“Our Chinese operation is on track to reach break-even point in EBITDA terms, on the back of strong volume growth,” said Lion Nathan. In the first half, its Chinese activities turned in an EBITA loss of A$7.5m, against a loss of A$12.2m in the first half last year.

16 May, 2003