Lion on target for $220 million full-year profit

Friday 13th August 2004

At the end of a "solid" third quarter, Lion Nathan is sticking to its forecast of a September full-year profit of $A195-200 million ($213-220 million).

Those figures, which exclude one-offs, would represent a rise of 8-11% on the 2003 financial year.

The company said volume growth in the Chinese market where it is investigating participating in an "industry consolidation" was strong as the summer approached.

But the Yangtze Delta market remained tough, with the business feeling cost pressures.

Group beer volumes, not including licensed XXXX production in the UK, grew 7% to 261 million litres.

In Australia a price increase takes effect on August 1.

A June increase in New Zealand had expanded margins, although volumes for the quarter were lower than a year ago.

Wine shipments fell to 195,000 cases due to the decision to reduce exposure to "unprofitable segments of the export market."

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