By SIMON HENDERY liquor writer
DB Breweries shareholders may be toasting larger dividend cheques later this year after the company said yesterday it was reviewing its payout policy.
Outgoing chairman David Sadler told shareholders at the company's annual meeting that after upgrading its Auckland brewery the company expected its capital expenditure needs
to be "modest".
"Hence your directors will review the stated dividend payout policy of around 67 per cent of net surplus attributable to shareholders," he said.
"They will also review the level of debt and equity appropriate to the ongoing business."
Sadler's speech was lodged with the Stock Exchange just before the end of trading yesterday and DB shares closed unchanged at $5.60.
In his speech, Sadler said the company believed bringing its previously separate Auckland operations together at its Otahuhu brewing site late last year would significantly increase earnings.
"We are now in a position to achieve benefits in all aspects of our business."
Earlier Sadler had thanked the 120 or so "loyal" shareholders who turned up for the meeting at Auckland's Ellerslie Convention Centre, which coincided with the third America's Cup race.
It seemed even the prospect of a free glass or two of the company's product had not been enough to entice shareholders away from their televisions.
"I think looking at the numbers there are a few shareholders who are loyal to Team New Zealand who are not here," Sadler said.
Managing director Brian Blake told the meeting the beer market remained highly competitive and had seen sales growth last year for the first time in a decade. Last November DB reported flat full-year earnings for the 12 months to September 30 with revenue up 3pc.
* Sadler, who has been chairman of DB for more than eight years, retired from the board yesterday and was replaced by Sir Colin Maiden.
