Lion profit margin steady at 2 p.c.

Press, 29 November 1979, Page 20

Lion profit margin steady at 2 p.c.

PA Wellington Lion Breweries, Ltd, showed a steady’ net profit of 2.0 c from every dollar of sales, in the six months to September 30. The group earned an estimated total net profit of $3,331,000 for the six months, compared with $2,941,000 in the same period last year. A profit ot $781,000 was realised on assets in the latest half-year, compared with $714,000 in the first half of last year. The trading profit in-

creased 14.5 per cent to $2.6M, and the total profit increased 13.3 per cent.

Sales value shows an increase of 16.3 per cent over last year, but the greater part of this is due to the Budget imposition of the 30 per cent sales tax on beer. Tax increased $572,000 to $3.2M.

“The full effect of this on The volume of sales has yet to be established by the industry. “Meantime, although there i has been a drop, sates have kept up remarkably well, i Moreover our continuing efforts to restrict and reduce ; expenses are now paying off,” said the chairman (Mr IR. P. Thompson). An increased interim dividend of seven per cent (3.5 c a share) is to oe paid taxfree from realised capital profits on December 14. Last year the interim dividend was 2.5 c a share, of which 1.5 c was tax-free.

Mr Thompson said that, in accordance with traditional trading patterns, profits for the first half-year were seasonally lower than those for the second half-year. “Although in this industry it is difficult accurately to forecast trading returns.

■the board believes that the profit for the company’s :ull !year will equal or exceed Hast year’s figure of $10.4M,” ! said Mr Thompson.