New Zealand, Wellington: Heineken-controlled DB Group said on February 3 its first-quarter sales had performed strongly while sales margins were in line with budget and ahead of last year.

"The targets we have set for 2004 are contingent upon achieving growth in both volume and margin," managing director Brian Blake told shareholders at the annual meeting. "Looking ahead, we will continue to grow the company, with a constant focus on our 10% ebit [earnings before interest and tax] growth target. "We recognise this is ambitious in a mature market but we are well placed to achieve this figure through our strong brand equity, the pursuit of new distribution opportunities, an ongoing focus on effectiveness and efficiency and the constant upskilling of our people."

DB's performance in 2003 was assisted by beer market growth of 2.4% that has signalled a significant turnaround for the New Zealand market. DB's ebit was up 13% on the previous year at $34 million, with a 10.7% lift in sales, which included the additional retail sales achieved from the purchased NZ Liquorland stores. Beer revenue was up 6.3%, underlining DB's shift towards premium products.

04 February, 2004