After investing significant capital on expansion plans and increasing the size of its sales team, Little World Beverages has booked a 28.5 per cent rise in net profit after tax for the first half of fiscal 2009.
After investing significant capital on expansion plans and increasing the size of its sales team, Little World Beverages has booked a 28.5 per cent rise in net profit after tax for the first half of fiscal 2009.
The company today reported a $2.2 million in net profit on the back of a 41.7 per cent increase in revenue to $23.6 million.
Earnings before interest, tax, depreciation and amortisation was up 58.7 per cent to $5 million and operating cash flow rose 71.1 per cent to $2 million.
Over the reporting period, the company completed expansion works at its Fremantle brewery and opened its first retail venue on the east coast, which Little World today said has been trading well.
In July last year, the company decided to increase the size and capability of its sales team which has delivered distribution gains and a greater brand presence.
"Excellent growth in on premise draught beer sales as contributed significantly to the results and positions the brands well to achieve visibility and eventual broader consumer demand," the company said.
The company is close to finishing its new production facility, White Rabbit Brewery, in Healesville Victoria, with the first brew expected to be ready in April this year.
The directors have declared a fully franked interim dividend of 2.3 cents.
Shares in the company were unchanged at $1.38 at 15:40 AEDT.
The announcement is below:
Commentary on the results for the half year ended 31 December 2008
The Directors of Little World Beverages present the financial results for the six
month period to 31 December 2008.
Total revenue increased 41.7% in the half-year ended 31 December 2008 with Net
Profit up 28.5% on the previous year.
Over the past two years the company has invested significant capital to create a
platform for growth and capitalise on a carefully developed brand with good sales
momentum.
Specifically, the new brewery at the Fremantle home base is now fully operational
and meeting the company's high expectations of even greater product quality and
consistency, better energy efficiencies, and greater capacity to meet longer term
demand.
A plan to increase the size and capability of the sales team was activated in July 2008.
The improved coverage has delivered distribution gains and greater brand presence.
Excellent growth in on premise draught beer sales has contributed significantly to
the results and positions the brands well to achieve visibility and eventual broader
consumer demand.
The company is also benefiting from new revenue streams in hospitality. The Little
Creatures Dining Hall has traded well in Melbourne, and the upgraded and expanded
areas of trading at Fremantle have contributed strongly.
The new production facility under construction in Victoria's Yarra Valley is to be
called the White Rabbit Brewery and will launch its own distinctive product and
brand (White Rabbit). Traditional open fermenting vessels have been imported from
Europe to provide the White Rabbit team with the opportunity to turn out a very
special beer. It is expected the first brew will be ready in April 2009 and distributed
by the Little Creatures team.
The Victorian fires did threaten the town of Healesville where White Rabbit is
based. The site was closed for a few days to ensure the safety of workers but
otherwise the brewery was fortunately spared any damage or significant delay.
Pipsqueak Cider continues to show good growth spurred by the trade giving ciders
plenty of shelf space in anticipation of growing consumer interest. Cider as a
category is the fastest growing alcoholic beverage category according to industry
reports.
Export agreements were signed in December with Aspall Cyder in the U.K. and
Barley Brothers in Singapore, both for three year terms. Aspall Cyder has
established a company owned sales team covering the major markets off the back of
strong growth in their own products. Barley Brothers have also developed a strong
team in Singapore after establishing the Little Creatures brand in Singapore over the
past year.
Shareholders on the register as at 26 March 2009 will receive a fully franked interim
dividend of 2.3 cents per share. The dividend is expected to be paid on or around 3
April 2009.
