Despite positive earnings from its Australian parent, the New Zealand arm of brewer Lion Nathan today reported that operating earnings in New Zealand fell 3.9 per cent to $86.7 million in the 12 months to September 30.
The company, once run by Sir Douglas Myers but now Australian-owned,said it encountered a competitive pricing and operating environment in New Zealand where net sales revenue rose 5.4 per cent.
Lion Nathan is one of the two main players in the New Zealand beer market, the other being DB Breweries. It is 46 per cent owned by Japan's Kirin.
Lion Nathan is expanding in spirits and has gained New Zealand regulatory clearance for a possible bid for Independent Liquor.
Meanwhile, Lion Nathan Ltd itself in Australia said its annual net profit increased 12.3 per cent, boosted by increased revenues from its major market.
The company, which brews Tooheys, Hahn, XXXX and Steinlager beers, posted net profit of A$226.8 million ($264.2m) for the year to September 30, up 12.3 per cent on last year.
Profit before one-off items was A$257.4m, up 3.2 per cent. That was slightly higher than market forecasts of A$254.2m, according to eight analysts surveyed by Reuters Estimates.
The company in July forecast underlying earnings of A$255.5m.
Lion Nathan mainly competes in Australia against Foster's Group Ltd.
Shares in the company, 46 per cent owned by Japan's Kirin Brewery Co, have added around 10 per cent for the calendar year to Friday's close of A$8.38 on the Australian share market, while the broader market has risen 14 per cent.
