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Categories: Corporate Results

Lion Nathan Confirms Profit, to Build NZ Plant

Source: Reuters
26/07/2007

Melbourne, July 26 - Lion Nathan, Australia's second largest brewer, reaffirmed its full-year forecast of a flat profit on Thursday as it reported a small rise in beer volumes for the nine months to date.

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Lion Nathan said it expected its full-year profit to be in the range of A$250 million-A$260 million ($200 million-$208 million).

That compares with consensus market estimates of a $255 million ($225 million) net profit, according to a Reuters Estimates survey of nine analysts.

It represents scant improvement on the brewer's A$257.4 million net profit result last year, which was a rise of 3.2 percent, with commodities costs and business reorganisation dampening results.

Total beer volumes rose 0.8 percent for the nine months to June, with Australian volumes up 0.6 percent.

The beer market is growing slowly, and the brewer said demand was subdued in the third quarter, especially in New South Wales state.

Beer volumes in New Zealand grew 1.9 percent, helped by premium brands.

Lion Nathan also said it would relocate and build a new brewery in Auckland, New Zealand's biggest city, at a cost of NZ$250 million ($200 million), and had agreed to sell the site of the current plant for NZ$162 million to AMP Capital Investors.

It said NZ$50 million of the sale price will be realised this financial year, with the balance due when the company leaves the site. It will continue to operate from the site for about four years while the new brewery is built.

Lion Nathan shares last traded down 1.3 percent at A$8.82 in an overall market down 0.8 percent. ($1=NZ$1.25) (A$1.13) (Additional reporting by Gyles Beckford in Wellington)



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