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Fosters Group 2009 Results – Sales Up, Profits Up in very challenging Markets

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Sales, profit and cash up in challenging markets
· Net sales revenue up 2.7% to $4.5 billion

· Net profit up 4.0% to $741.5 million and earnings per share1 up 4.6% to 38.5 cents

· Operating cash flow pre interest and tax up 12.6% to $1.37 billion

· Final dividend of 15.25 cents per share – total annual dividend of 27.25 cents

Transformation Momentum

“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.

Business Highlights

“In a challenging global economy, today’s result stands as a reminder of the continuing strength of Foster’s.

“The Australian beer, cider and spirits business, now known as Carlton & United Breweries, returned an excellent result.

“Australian beer volumes were up in a good domestic market and we continue to leverage our leading innovation program for strong earnings growth.

“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.

“Overall, our brands are in very good shape, holding their own in a tough consumer environment.

“Foster’s took write downs today of $397.6 million associated with the Transformation Program, well within the range forecast in February.

“Foster’s balance sheet is strong, we have conservative gearing, good cash reserves and substantial committed undrawn bank facilities.

“Foster’s business strength, change momentum and strong brand health give me the confidence that the business is in good shape now, and that better is to come.”

You can read the  Fosters Year End Results and Reports here results here at DrinksDaily:

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Thursday, November 23, 8:36 pm

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