• Net profit after tax pre significant items up 11% to $363 million
• Net profit after tax up 90% to $554 million
• Earnings per share pre significant items up 10.4% to 18 cents per share
• Earnings per share pre significant items & SGARA increased 12.9% to 18.4 cents
• Net sales revenue up 3.5% to $2.4 billion
• Off-market share buy-back of up to $400 million
• Interim dividend up 10.3% to 10.75 cents per share

Click here for full half year results PDF


Results Summary - Foster’s Group Limited results for the 6 months ended 31 December 2006

CEO Comments

Foster’s Chief Executive Officer, Trevor O’Hoy said:

“Strengthening global sales revenues drove a solid first half result for Foster’s.

“Net profit pre significant items was up 11% to $363 million.

“First half earnings growth accelerated with earnings per share prior to significant items and SGARA increasing 12.9% to 18.4 cents.

“Reported net profit increased 90% to $554 million on the back of solid underlying business performance and a $190 million profit from divestments.

“Constant currency revenue of Foster’s top 10 brands grew by 5.9% with the Americas and European businesses returning to strong growth.

“Of our global wine brands, Beringer, Lindemans, Penfolds and Wolf Blass, performed strongly and the Rosemount relaunch commenced in Australia and the UK in November.

“In our Australian beer business, Crown and Corona remain Foster’s top premium performers while Pure Blonde and Carlton Draught continue their extraordinary growth.

“18 months on from the Southcorp acquisition, the integration is now substantially complete.

“Synergy savings, however, have been partially offset by temporary costs related to additional complexity at new wine packaging facilities and in Australian wine export logistics.

“Refining our route-to-market model in Australia remains critical.

“We are committed to Australian multi-beverage and we have most aspects of the model right, however, we are continuing to evolve the sales structure to leverage specialist wine skills and improve customer service levels.

“We are comfortable with current grape and wine supply for the 2007 vintage and expect all key vintage 2007 product requirements to be met.

“We are confident in the timing of asset sale proceeds and our ability to generate strong operating cash flows. As a result, we have announced an off-market share buy-back of up to $400 million this morning.

“Factoring in the cash requirements of the buy-back, we remain on track to reduce net debt to less than $3 billion by June 2008.

“Sustained brand investment, improving route-to-market models and operating efficiencies will drive accelerating earnings growth in the second half, and for the full year.

“Announced asset sales programs are progressing well with the sale of Pallhuber completed during the period, and the disposal of the remaining Wine Clubs and Services businesses expected this financial year.

“Foster’s has declared an interim dividend of 10.75 cents per share, up 10.3%.”

For further information please contact:

Media
Troy Hey
Tel: +61 3 9633 2085
Mob: 0409 709 126

Investor
Chris Knorr
Tel: +61 3 9633 2685
Mob: 0417 033 623