By Ian Neubauer
Lion Nathan has reported revenue growth of 7 per cent for the nine month period ending June 30 and confirmed its profit guidance of $265-$275 million for the 2007-08 fiscal year.
Lion Nathan’s Australian beer volume grew by 3.7 per cent in the period, propped up by its January purchase of Tasmanian brewer J Boag & Son.
Sales of spirits and RTDs volumes were also up compared to the same period last year, albeit off a low base as McKenna and Inner Circle Rum brands gain traction in their first full year of sales.
Lion Nathan Wine Group volumes were up 6.8 per cent in the period despite challenging market conditions in the US and the sale of American distributor Beam Wine Estates to Constellation Brands. Its wines are now distributed in America by Lion Nathan USA.
“Our business has been able to grow both volume and revenue during arguably more difficult economic conditions during the last nine months,” said Lion Nathan CEO, Rob Murray.
“It is pleasing to see investments we have made in our brands, our breweries and our people translating into strong results. We expect to see further upsides from these investments as we step up our earnings in 2009.”
Lion Nathan shares have gained 6.4 per cent in value over the past week, appreciating from $8.33 on July 18 to $8.90 today.