Lift in Elders profit likely
NZPA-AAP Melbourne Brewing, agribusiness and investment company, Elders IXL, is expected to increase its net profit at least 50 per cent when it reports for the year ended June 30 tomorrow. Analysts polled by Reuters picked a net profit range between sAust63o million and sAust6so million, but all said they would not be surprised if one-off profits on share trading and property sent the result even higher, depending on tax treatment. “It’s been an extremely successful year for the group,” said analyst Craig Drummond, of J. B. Were and Son. Mr Drummond picked a 1987-88 net profit of sAust63s million, up from $400.87 million last year, itself up 121 per cent on 1985-86. But he said the profit could top $660 million, depending how Elders treats the £1.3 billion sale of its U.K. pub chain. The pattern for another substantial increase in full year profit was.set with the 83 per cent rise in interim net profit to $272.14 million. Revenue for the half was up 61 per cent to $7.60 billion compared with $10.56 billion for the 1986-87 year. Since the half, Elders will have to bring to account the profits on the sale of the pub chain and the costs of early redemption of $B6O million in preference shares. Analysts said the first full year contributions by wholly owned. British brewer, Courage, Ltd, and Canada’s Carling O’Keefe, Ltd, would strongly boost brewing group earnings along with continued strong sales by the Australian Carltori and United Breweries’ Foster’s brand.
Analysts expected Elders’s finance division to maintain last year’s earnings before interest and tax contribution of around $7O million after weathering the downturn in trade following the October 19 sharemarket slump. McCaughan Dyson Capel Cure analyst, Justin Arter, said he expected a net profit of . around $631 million depending on the tax treatment Elders adopted for the early payout of the preferences to the Broken Hill Pty Co, Ltd. Elders executives headed by chairman and chief executive officer, Mr John Elliott, were also unlikely to favour expanding capital since they control an effective 32 per cent of stock.
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Press, 26 September 1988, Page 10
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352Lift in Elders profit likely Press, 26 September 1988, Page 10
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