Sydney - Tuesday - August 29: (RWE Australian Business News) -...

Sydney - Tuesday - August 29: (RWE Australian Business News) -
Foster's Group Ltd (ASX code: FGL) lifted net profit 26.8 per cent to
$1.17 billion in the 12 months ended June 30 from $919.9 million for the
previous year.
"Normalised" net profit (continuing businesses pre significant
items, SGARA and amortisation) rose 15.4 per cent to $623.1 million from
$540 million.
Total operating revenue was up 23.2 per cent to $5.12 billion
from $4.15 billion.
Earnings per share rose 26.1 per cent to 58.0c from 46.0c.
Final dividend is 11.75c, fully franked, for shareholders
registered September 8.
Total dividend for the year is 21.5c, up from 20c.

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Chief executive Mr Trevor O'Hoy said the Southcorp integration
was largely complete and synergy capture ahead of plan.
"We've integrated sales and related support functions,
rationalised production infrastructure and overheads, and developed a
strong pipeline of initiatives to grow wine revenues," he said.
"During a period of integration and transformation, the strength
of our core businesses and the benefits of our balanced portfolio shone
through.
"For the second consecutive year, normalised earnings per share
grew more than 14 per cent, and we expanded EBIT margins in all of our
businesses except Wine Clubs and Services.
"Group margins were up 180 basis points to 22.6 per cent.
"Pro forma group margins expanded 370 basis points.
"Significantly, the Southcorp acquisition was neutral to
earnings in its first full year."

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"We've continued to narrow our focus on premium drinks,
realising significant value from underperforming or non-strategic
assets, from breweries in Asia to wineries in the Hunter Valley.
"Today we took that a step further, announcing our intention to
dispose of our Wine Clubs and Wine Services businesses; further
reinforcing our focus on core businesses," Mr O'Hoy said.
"Strong operating cash-flows and proceeds from asset sales have
contributed to reduce net debt to $3.5 billion, creating the opportunity
to return funds to shareholders through an on-market share buyback.
"CUB delivered another outstanding result, driven by strong
revenue growth in our core beer, spirit and ready-to-drink portfolios,
and the realisation of supply and overhead efficiencies.
"We've reconfigured our Australian customer facing business into
a new, customer-focused, service-oriented organisation, creating revenue
and margin opportunities for both customers and Foster's."

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"Our global wine business faced challenges during the period and
revenue growth was disappointing.
"While our focus on integration and synergies created some
distraction, innovation is now firmly at the top of the agenda.
"Today, we re-launched Rosemount as a contemporary style leader
and we introduced the Lindemans Country of Origin range, demonstrating
our unique global sourcing capability.
"These are just two examples of a range of innovation and new
product development initiatives that we believe will drive improved
revenue performance in 2007.
"Notwithstanding the cyclical impacts of wine oversupply in
Australia, Foster's is well-positioned with balanced supply commitments
and significantly increased flexibility in future years.
"The wine category continues to show growth in all of our
markets.
"Consumers continue to demand high levels of quality and
consistency that premium branded products such as ours are uniquely able
to provide," the CEO said.