16 Nov 2009

Brewing giant unhappy with NZ profit result

2:06 pm on 16 November 2009

The owner of DB Breweries has experienced a substantial drop in profit in its New Zealand operations.

Singapore-listed Asia-Pacific Breweries, which also makes Tiger beer, says its overall profit increased by almost 40% to a record $167 million in the year to September.

But the brewing giant says its performance in New Zealand was unsatisfactory. It made $10.3 million profit during the year, about a third of what it made the previous year.

Asia-Pacific Breweries attributes the drop to greater competition, reducing sales volumes, higher packaging costs and foreign exchange losses.

It says trading conditions are not expected to improve in the short-term and it is addressing its performance in New Zealand.