May 7, 2010
Lion Nathan today announced its trading update for the quarter ended 31 December 2009, in conjunction with Kirin Holdings 2010 financial year first quarter announcement.
A strong start to the financial year from Lion Nathan Australia (LNA) underpinned a solid performance for the Company’s combined alcohol businesses across Australia and New Zealand. The combined business delivered revenue of $687.4 million, growth of 6.6 per cent on the prior corresponding period.
Lion Nathan National Foods CEO, Rob Murray said: “The investments LNA has made in its brands, breweries and people have created a strong and agile business”.
LNA’s power brand portfolio continued to grow it’s share of portfolio mix. Premiumisation across the market combined with successful innovation to drive strong revenue growth of 8.0%. Volume grew 2.89% reflecting the resilience of the Australian beer market in all economic circumstances.
XXXX Gold, the second largest beer in Australia continued its impressive growth. Hahn Super Dry also had a particularly strong summer. New innovations XXXX Summer Bright Lager and Hahn Super Dry 3.5 performed ahead of expectations. The Boags portfolio continues to grow, benefiting from the reach of Lion Nathan’s route to market and a significant increase in marketing investment.
The New Zealand market continued to be challenging as a consequence of difficult economic conditions. In the year to December 2009, the total NZ alcohol market declined 3.3 per cent1 in volume terms, while the beer market declined 5.0 per cent. Lion Nathan New Zealand (LNNZ) continued to outperform the market with total volume broadly stable (up 0.4 per cent) and revenue growth of 2.3% in the December quarter.
Solid performances from core brands and a continued focus on innovation helped deliver the solid revenue performance. Recent innovations Steinlager Edge, Speight’s Traverse and Mac’s Isaacs Cider performed very well through the summer. During the quarter, LNNZ began brewing at its new Auckland brewery, called ‘The Pride’. The new brewery will provide LNNZ with an improved cost base and greater manufacturing and innovation agility.
Conditions in the wine industry remain very challenging with the global slowdown combined with an oversupply of grapes putting downward pressure on pricing in domestic and international markets. The strong Australian dollar continues to undermine performance in key export markets. Wine remains a very small part of Lion Nathan National Foods’ business at less than 1 percent of group profit.
Lion Nathan National Foods – Future Reporting intentions
This will be the final standalone quarterly trading update from Lion Nathan. From this point forward, Lion Nathan National Foods will share its group-wide performance with external stakeholders. National Foods is aligning its financial year with that of Lion Nathan. National Foods 2009 financial year (which was January to December before the change of year end) has previously been disclosed.
For further information, please contact:
Corporate Affairs Director
Lion Nathan National Foods
Tel: (02) 9320 2236
Mob: 0400 304 147
Stakeholder Communications & Relations Manager
Lion Nathan National Foods
Tel: (02) 9320 2254
Mob: 0400 015 605