CEO Comments
Foster's Chief Executive Officer, Trevor O'Hoy said:
"We have delivered accelerating earnings per share growth and our third consecutive year of double digit growth.
"Group earnings before interest, tax, SGARA and significant items grew 7.6% to $1.15 billion.
"Revenues grew 4.7% to $4.5 billion, or almost 6% at constant exchange rates.
"Revenue growth accelerated strongly in the second half, up 8.6% at constant exchange rates.
"Net profit pre significant items and SGARA grew 16.8% to $716.1 million.
"Cash conversion was strong at 93% of EBITDAS - ahead of our 85-90% guidance range.
"Growth of international wine was a highlight and reinforces our strategy to become a major global premium wine player.
"One third of group earnings are now offshore and wine represents over 40% of total earnings.
"Our Australian business remains the nation's leading alcohol provider - and continues to generate strong earnings growth.
"Brand health is strong, with all of our global wine brands in growth in the second half.
"We relaunched Rosemount one year ago and I'm pleased to say the brand returned to global growth in the second half.
"In Australian beer, Pure Blonde continues to be a phenomenon, single-handedly accounting for over 21% of total beer category value growth in 2007.
"VB remains Australia's clear favourite - with new packaging and a revamped summer promotion on the way.
"My faith and confidence in the business model we have built remains as strong as ever.
"While I maintain that we can - and should - do better, all the financial indicators are heading in the right direction.
"Importantly, revenue growth is sustainable - driven by systematic and sustained investment in brand and sales support.
"Our focus is on continuing to improve returns from current businesses and delivering sustainable growth in shareholder value.
"The Board has announced a capital management program of up to $350 million and declared a fully franked final dividend of 13c up 10.6%.
