Frucor cuts revenue growth forecast

Friday 19th January 2001

Beverage marketer Frucor has reported a 55% jump in December first half revenue, to $120.7 million but the result is still 5% below the prospectus forecast.

Managing director Mark Cowsill said the shortfall was from trading in the new British market. New Zealand and Australia both exceeded budget.

Second-quarter revenue of $67 million was well ahead of the first quarter's $53.7 million due to the advent of summer and business growth in Australasia.

"Overall a favourable product mix can be anticipated with higher margin products performing better," Mr Cowsill said.

Frucor shares have rallied sharply in recent weeks, from a low of $1.70 to $2.02 on Wednesday. They were floated at $1.55 last July and have traded as high as $2.40.

The acquisition late last year of the Australian distribution network of Spring Valley from Bonlac was seen as a positive step for the company's Australian expansion strategy.

The New Age Beverage sales category, which is mostly accounted for by the "V" energy drink, now makes up 49% of sales. Second-half sales were $33 million, up 124%.

The Fruit Juice and Drinks category accounted for 30% of overall revenue. It showed no growth during the period.

Sales for the Other Beverage category, which is made up mostly of water, carbonated drinks and agency lines grew 63%, to $25 million, or 21% of the total.

Frucor said the acquisition of H2Go in November 1999 had furnished very strong growth.

Some 68.3% of revenue came from New Zealand during the period, compared with 85.1% a year ago. Second-half revenue is forecast to be $134 million bringing the full year to $255 million, against a prospectus forecast of $264 million.

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