By Ian Neubauer
Lion Nathan has said the recent acquisition of J Boag & Son will generate profit in 2009 despite integration and interest costs that will trim $13 million from the company’s net profit this fiscal year.
“When the Boag’s acquisition was announced, we said that it would be 1.7 cents per share dilutive to FY08 earnings per share plus the impact of integration and distribution termination costs, and other one-time items, which were unknown at the time,” Lion Nathan CEO Rob Murray said at the company’s AGM on Thursday. “The costs are now more accurately able to be quantified as… 2.4 cents per share.”
Lion Nathan acquired the boutique Tasmanian brewer on January 2 for $325 million in what the company described as a “highly strategic and complementary acquisition” with a “strong portfolio and geographic fit”.
Lion shares gained 19 cents yesterday to finish at $9.42 following the AGM but dropped 20 cents by 12:00pm today.