Foster’s Sales Revenue Up 2.7% in 2009
"In a challenging global economy, today's result stands as a reminder of the continuing strength of Foster's. The Australian beer, cider and spirits business, now known as Carlton & United Breweries, returned an excellent result."
25 Aug 2009 --- The Foster’s Group has reported that full year net sales revenue was up 2.7% to $4.5 billion. Net profit was up 4.0% to $741.5 million and earnings per share up 4.6% to 38.5 cents, said Ian Johnston, Chief Executive Officer.
"In the six months since announcing a major transformation program, Foster's has put in place a new strategy; a new company structure; and is embedding a new culture across the business.
"Organisational renewal is accelerating with new operational leadership in the Americas, Australasian wine and Carlton & United Breweries.
"This year's result includes $21 million of efficiency benefits and Foster's remains on-track to deliver $100 million of benefits in 2011.
"In a challenging global economy, today's result stands as a reminder of the continuing strength of Foster's.
"The Australian beer, cider and spirits business, now known as Carlton & United Breweries, returned an excellent result.
"Australian beer volumes were up in a good domestic market and we continue to leverage our leading innovation program for strong earnings growth.
"Wine Review related initiatives are on track and there is an extraordinary amount of activity underway. However the wine category is bearing the full brunt of a lack of consumer confidence brought on by global economic conditions.
"Wine returns are not where we want them to be, but it remains a profitable business, producing exceptional quality wines and continues to generate solid cash flows.
"Overall, our brands are in very good shape, holding their own in a tough consumer environment.
"Foster's took write downs today of $397.6 million associated with the Transformation Program, well within the range forecast in February.
"Foster's balance sheet is strong, we have conservative gearing, good cash reserves and substantial committed undrawn bank facilities.
"Foster's business strength, change momentum and strong brand health give me the confidence that the business is in good shape now, and that better is to come," Johnston concluded.
