Foster's reports 88% profit slump |
| Print |
| Written by Claire Weekes | |
| Tuesday, 26 August 2008 | |
Australian wine giant Foster's Group has reported an 88% slump in profits as sales of its wines continue to fall. 
Net profit for Australia's second largest wine producer, whose well known brands include Penfolds and Wolf Blass, tumbled from $966.6 million (£526.9 million) to $111.7 million (£60.9 million) for the year end 30 June. In a statement, chief executive Ian Johnston admitted that: "Put simply, financial returns from wine have not met our expectations." Foster's first issued a profit warning in June which lead to the exit of chief executive Trevor O'Hoy, and prompted a strategic review of its wine business, which it expects to complete by the end of the year. There is speculation that the outcome of the review could lead to the sale of some brands or vineyards. Rival Constellation recently put a number of its own brands up for sale, but has yet to find a buyer. Foster's has declined to provide any specific earnings outlook for the 2008 - 2009 fiscal period. Related Articles
Share This
Email This
Comments (0)
 Write comment
|
Show/Hide comments
Show/Hide comment form
