Lion Nathan H1 profit up 3.6%, held back by NZ

By NZPA

Thursday 17th May 2007

Australasian brewer Lion Nathan said today its half-year net profit before one-off items rose 3.6%, after a strong performance for its Australian business offset weakness in New Zealand.

Profit before one-off items was $A156.8 million ($NZ178 million), up from $A151.3 million a year ago. Market forecasts for earnings before one-off items centred on about $A149 million, according to a survey of four analysts.

New Zealand revenue rose 6.4%. Operating earnings before interest and tax were flat at NZ$52.6 million, in line with expectations, due to input cost increases and a highly competitive pricing environment with increased costs of doing business.

The company, which brews Tooheys, Hahn, XXXX and Steinlager beers, posted a reported net profit of $A162.0 million for the six months to March 31.

Lion Nathan mainly competes in Australia against Foster's Group Ltd and in New Zealand against DB Breweries Ltd, a unit of Asia-Pacific Breweries.

Shares in the company, 46% owned by Japan's Kirin Brewery Co, have added around 12% so far this year to yesterday's close of $A9.07, compared with a 15% rise in the broader market.

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