Foster's Full Year Profit Increases
Earnings per share increases by 4.6%
Foster's, a beverage company, has announced yearly results which ended on June 30, 2009. The net sales revenue increases by 2.7% to $4.5 billion. Net profit increases by 4.0% to $741.5m and earnings per share increases by 4.6% to 38.5 cents.
Ian Johnston, chief executive officer of Foster's, said: In the six months since announcing a major transformation program, Foster's has put in place a new strategy; a new company structure; and is embedding a new culture across the business. Organisational renewal is accelerating with new operational leadership in the Americas, Australasian wine and Carlton & United Breweries.
This year's result includes $21 million of efficiency benefits and Foster's remains on-track to deliver $100 million of benefits in 2011. The Australian beer, cider and spirits business, now known as Carlton & United Breweries, returned an excellent result. Wine Review related initiatives are on track and there is an extraordinary amount of activity underway. However the wine category is bearing the full brunt of a lack of consumer confidence brought on by global economic conditions.
Wine returns are not where we want them to be, but it remains a profitable business, producing exceptional quality wines and continues to generate solid cash flows. Foster's took write downs today of $397.6 million associated with the Transformation Program, well within the range forecast in February.”