Australian beer maker, Lion Nathan, confirmed on December 17 that it remained confident of its guidance for the 2004 fiscal year of Net Profit after Tax (from Operations) of between $195 million and $200 million – up between 8 and 11 per cent on the prior year.

Commenting on trading conditions at the Company’s Annual General Meeting in Sydney, Lion Nathan Chief Executive Officer, Gordon Cairns, said: “In Australia, pricing is competitive as we move towards Christmas, but we remain comfortable with our EBITA guidance of 5 per cent growth. In New Zealand, our competitor has taken price down chasing market share. We have responded accordingly, which will crimp New Zealand earnings in the first half. China volumes are growing at better than historic levels. Wine case volumes are growing at better than market and close to 10 per cent up on last year.”

He also indicated that three one-off factors were likely to impact first half earnings growth. These include: One-off restructuring changes of around $5million pre-tax in the Australian and New Zealand beer businesses; In comparison with the same period last year, a weaker New Zealand currency which will result in a less favourable translation of New Zealand EBITA to Australian dollars; and A higher charge for “Corporate” costs, reflecting the fact that in the first half of the 2003 fiscal year, those expenses included net positive one-off gains.

Lion Nathan will announce its results for the six months ended 31 March 2004 on Tuesday, 18 May 2004.

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