EARNINGS PER SHARE[1] IN LINE WITH JUNE GUIDANCE AT 36.8 CENTS
· Net profit (pre significant items and SGARA) down 0.4% to $713.2 million
· Significant items loss after tax of $602.9 million
· Net profit (post significant items and SGARA) down 88.4% to $111.7 million
· Cash flow after dividends up 52.1% to $433.9 million
· Final dividend up 9.6% to 14.25 cents per share
Foster's Group Limited (Foster's) today reported a 0.4% decrease in net profit1 to $713.2 million. Earnings per share1 was up 3.4% to 36.8 cents, within the guidance range provided to the market on 10 June 2008.
Cash flow and liquidity were very strong. Cash flow after dividends increased 52.1% to $433.9 million. Cash conversion increased 0.3 percentage points to 93.2% of EBITDAS2 with continued strong performance in both beer and wine.
Constant currency net sales revenue decreased 0.1%, earnings before interest, tax, significant items and SGARA (EBITS) increased 4.3% and earnings per share1 increased 7.9%.
Foster's beer business in Australia remains robust and continues to generate solid earnings growth. Foreign exchange movements in the 12 months to 30 June 2008 cut wine earnings by approximately $70 million and wine earnings growth by 14.6 percentage points.
Continuing business significant items for the period were $730.4 million ($605.8 million after tax), reflecting impairment charges to wine carrying values in the Americas and Australia, as foreshadowed in early June.
Net debt declined $165.9 million on solid operating cash flows and a $337.9 million benefit from exchange rate movements, partially offset by the completion of a $350 million share buy-back program and a $244.5 million payment in relation to a disputed tax assessment.
Foster's retains significant liquidity with $1.5 billion of committed undrawn facilities and $161 million of cash balances. Interest cover (pre significant items) is 8 times and gearing is 62.4%.
Further information:
Media Investors
Troy Hey Chris Knorr
Tel: +61 3 9633 2085 Tel: +61 3 9633 2685
Mob: +61 409 709 126 Mob: +61 417 033 623
