Foster's drinks to half-year profit

Earnings before interest and tax for the six months to the end of December rose 25.6% rise to A$471.8 million.

The company says beer sales also performed very well in the face of unsettled trading conditions, and international beer was up strongly.

"The result for the half clearly demonstrates that Foster's strategy of developing a well balanced global premium branded beverage company, with the right mix of cash flow and growth businesses, is continuing to deliver shareholder value," says President and CEO, Ted Kunkel.

Overall sales revenue was up 21.6% to $2 billion for the period reflecting the purchase of US wine company Beringer Wine Estates, as well as improved margins across the company's core beer and wine portfolios.

"Cash profit for the group increased 13.5% to A$285.8 million demonstrating the group's continuing strong cash generation capacity," says Mr Kunkel.

Foster's says the half-year was highlighted by the acquisition of Beringer, which has positioned the company's wine division as one of the world's leading premium wine producers.

Beringer earned A$63.7 million for Foster's in three months during the half-year period. Overall wine sales for the company were A$677.4 million for the six months.

Australian beer earnings rose 5.1 % to A$231.1 million. Foster's says it was an excellent result given the unsettled trading conditions in the domestic market following the introduction of GST which saw draught beer prices rise around 10%. while volumes fell 4%.

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