Lion Pty Ltd, the Australian arm of Japan’s Kirin Holdings, has seen first-half profits drop at its dairy business, which was hit by lower sales and higher raw materials costs.
Lion booked EBIT of A$44m (US$39.3m) at its dairies division in the six months to 31 March, an 11.6% drop year-on-year. Sales were down 5.5% at the unit, falling to A$1.24bn. The company attributed the decline to weak consumer sentiment in a highly competitive environment.
Go deeper with GlobalData
“While Lion continues to pursue opportunities to optimise its cost-base and improve competitiveness it remains a long way from achieving an acceptable return on invested capital, with revenue pressure offsetting efficiency gains,” the group said.
In contrast, Lion’s wine and spirit business saw both revenue and EBIT rise by 21.7% in the period. Sales totalled A$1.45bn and EBIT rose to A$410.5m, the company revealed.
Kirin, Lion’s Japanese parent company, reported a 5.6% rise in operating income, which totalled JPY60.4bn (US$604.9m) in the half. Sales were up 5.2% to JPY1.09trn, the company said.
See Also:
To view Lion’s trading update click here, or to access Kirin’s financial report click here.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
