Focus shift boosts Lion Nathan profit

By Nick Stride

Friday 17th May 2002

Lion Nathan chief executive Gordon Cairns yesterday confirmed the brewer was on track to achieve double-digit full-year earnings growth as he announced a $A100.1 million ($120 million) net profit for the March first half.

The result was up 12.5% on last year's $A89 million.

Overall earnings before interest, tax and amortisation from brewing rose 7% to $A217.3 million but the China operation continued to lose money.

The New Zealand liquor business increased earnings, volumes and market share.

Mr Cairns said the company had benefited from concentrating on improving margins and securing distribution rather than "relying on the market share metric."

Operating cashflow after working capital movements rose 27% to $A58.3 million. The ratio of net debt to equity was 70.3%, down from 86.6%.

Mr Cairns said Lion had made excellent progress in bedding down the acquisitions of Australian winemakers Petaluma and Banksia, of which Lion now owns 85%.

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