12.45pm
Lion Breweries today said jobs are on the line as the company moves to keep a tight rein on overheads in the current financial year.
The Auckland-based brewer yesterday posted a net profit of $96.9 million for the September year, up 8.4 per cent on the previous 12 months on strong
beer sales.
The company's parent, Sydney-based Lion Nathan, returned a A$180.1 million ($209.24 million) net profit on earnings of A$406.1 million in the year to September 30.
Lion Nathan chief executive Gordon Cairns yesterday said further cuts to the company's 5000-strong workforce would be considered as it moved to shave A$7-A$10 million in overheads a year.
"If I was to give a little more detail on the cost reductions for 2004, it would be highly sensitive because it's primarily people," Mr Cairns said.
Lion Breweries managing director Julian Davidson today confirmed there were likely to be job losses at the New Zealand operations as Lion Nathan streamlined its cost structures.
"The way we look at lowering our cost base is raw materials, packaging materials, the use of capital within our business, and total overheads," Mr Davidson said.
"Within the New Zealand context... we always take (over) heads out of our business on an ongoing basis as we can find process or systemisation or capability to do that," he told NZPA today.
It was unclear how many people would be affected, and the company was still deciding on how to achieve its cost-savings targets.
Lion Breweries employs 590 full time equivalent staff.
"I do have an obligation to lower costs and I have a few things kicking around that give me that potential," Mr Davidson said.
"In previous years we've held flat overheads... so my real target is to try and hold overheads flat, which means taking the inflationary component out of it."
Inflation is currently running at 1.5 per cent.
Meanwhile, Lion Nathan has forecast net profits of A$195-A$200 million for the 2003-04 year, an increase of 8.3 per cent on the 2002-03 year.
It yesterday confirmed it would pay a fully franked final dividend of A14 cents per share, 17 per cent up on last year, on January 14, 2004.
The total dividend for the September year came to a fully franked A27 cents a share, 35 per cent up on last year.
At 12.20pm in Wellington, Lion Nathan shares were up 10 cents at $6.50, having traded between $5.45 and $6.70 this year.
- NZPA
12.45pm
Lion Breweries today said jobs are on the line as the company moves to keep a tight rein on overheads in the current financial year.
The Auckland-based brewer yesterday posted a net profit of $96.9 million for the September year, up 8.4 per cent on the previous 12 months on strong
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