Australian beer maker Foster's has reported a 128% rise in its first half profits, aided by disposal of its Australian Leisure and Hospitality business. Despite the rise in profits, the company was disappointed with its results; when the disposal of the ALH business is excluded, profits only rose 2.9% compared to the same period a year before, Datamonitor revealed on February 11.
The company reported disappointing results from its wine unit, which saw a drop in earnings before interest, tax, amortization and SGARA (self-generating and regenerating assets) of 28.1%.

The company's beer unit performed better in the period, reporting an 8.7% rise in EBITAS to A$311.2 million.

Commenting on the results, Ted Kunkel, CEO of the company stated: "I'll be the first to admit that the level of the earnings this half has been less than acceptable. In the case of (North American) wine we intend to take steps to re-orientate our business to achieve sustainable earnings growth even in the changed market conditions."

13 February, 2004