By Andrew Starke
Little World Beverages (LWB), brewer of Little Creatures and White Rabbit beer, has predicted record 2010/2011 financial year profits after a strong performance over the six months to December 31, 2010.
The company said increased demand for it beers and Pipsqueak cider had seen its net profit after tax for the period increase 35.4 percent on the back of a consumer shift towards the premium and craft segments of the beer market.
Group profit was $4.6 million, up from $3.4 million for the six months to December 31, 2009.
In a statement to the ASX, LWB directors said they anticipated continued good performance, forecasting net profit after tax for the year ended June 30, 2011 will be in a range of $8.3 million to $8.8 million.
The brewer said its relatively new White Rabbit Brewery in regional Victoria, where it brews Dark and White ales, was outperforming expectations.
It was also optimistic about its purchase of another Victorian site – Valley Mills near Geelong – where it proposes to develop a new brewing facility.
“The vision is for future east coast demand for LWB products to be satisfied with lower distribution costs and lower carbon miles,” said the company’s ASX statement.
"Having settled the purchase on January 31, 2011, work is currently underway to obtain the necessary approvals required to progress development of the Geelong brewery."
Shares in LWB were trading at $3.60 at 2pm today (Feb 21), up from $3.50 seven days ago.