Australia: Lion Nathan Ltd. beer volumes up 2.6% for the 9-mth to June

Australasian brewer Lion Nathan Ltd. said July 28 its beer volumes, excluding UK licensed and international export volumes, rose 2.6 percent to 6.52 million hl for the nine months to June, 2006.

Australian beer volumes were up 1.8 percent to 5.28 million hl driven by strong growth in international premium and national brands offset by a decline in regional and value brands. After allowing for the impact of trade de-stoking at the end of the 2005 year, volumes were up 0.2% son a comparable basis. The Power Brand portfolio grew more than 4.5% YTD (or 3% comparable basis), with the international Premium component of that portfolio continuing to grow at double-*digit rates. The overall beer market appears to be growing slightly with AC Nielsen MAT volume data to June 2006 showing an increase of 0.3%.

In New Zealand, beer volumes grew by 6.5% to 1.24 million YTD primarily due to core brand growth. Adjusting for the impact of trade de-socking in 2005, comparable volume growth is estimated at 3.2% for the period. While overall volume growth has been encouraging, the sector continues to experience extremely competitive trading conditions and a declining tap beer market. After some initial signs of value growth in the second half of the year, the competitive environment has remained intense and, given commodity price and inflationary impacts, the New Zealand beer business earnings will remain subdued for the short to medium term.

The company said it confirmed fiscal 2006 earnings guidance for net profit before significant and one-off items of AU$255.5 million (US$193.6 million). (US$1=AU$1.32)

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