chartist view?, page-3

True enough Alpha
We need to see how the followers of Fosters feel about the latest report out today ,

I think most had formed the opinion that Fosters would not be able to make resonable profits let alown increase A bit like its like its stablemate,

Not a real bad report for these economic times and a dividend comming up maybe Fosters can end its down trend soon ,

And even if all hell breaks loose I think we will still like a tipple in the bunkers.






Foster’s pours a steady first half
February 11, 2003
Foster's Group (FGL) posted a 4.1% increase in H1 net profit to $335.3 million on Tuesday. Analysts described the result was in line with market expectations and noted comments from the company that the “steady” growth is expected to continue. “The core beer and wine businesses performed very well, achieving solid volume and share gains and strong margins despite highly competitive market segments,” commented CEO Ted Kunkel.

Adjusting for SGARA, significant items and amortisation, net profit rose 9.4% to $355.6 million compared to $322 million last year. An interim dividend of 8.25c was declared, compared to 7.5c a year ago.

Foster’s said it had improved margins at its core Australian beer business and maintained margins in the global wine trade division. This contrasted with comments from arch rival Lion Nathan (LNN) on Monday that it was losing both volume and market share in Australia amid tough competition.



Operating revenue rose 6.4% to $2.7 billion while operating cashflow of $225.7 million was significantly higher than the previous year’s $58.4 million which had raised some analyst concerns at the time.

Foster’s Carlton United Brewing business lifted EBITA by 7.1% to $260.8 million and boosted cashflows 25% to $306.5 million thanks to favourable seasonal factors and a bid reduction in working capital.

The company’s fast-growing wine Beringer Blass wine division posted double digit volume growth to 9.6 million cases although revenue increased a more modest 6.7%. Beringer has wineries in Australia, US, Chile, NZ and Italy, and owns brands including Wolf Blass and Yellowglen.

Interestingly, the company revealed that its earnings were being hurt by the rising Australian dollar, with EBITA excluding SGARA up 3.9% to $253.7 million but excluding the currency was up 9.6%.

“While competition has been intense, Foster's spread of activities has provided some protection and strategic flexibility,” observed SHAW Stockbroking’s head of industrial research Scott Marshall.

“Profit was slightly above our forecasts of $334 million but we note the company’s outlook is for moderate growth on a like-for-like basis, so we maintain our positive long term view.”

Fosters’ 2002 profit rose 20% thanks to a 30% leap in EBITA from its Beringer Blass division on similar revenue growth.

At the close of trading Monday Foster’s shares were 1c higher at $4.40.