Lion profit down 13pc

JAPAN’S Kirin-owned dairy and drinks group Lion has recorded a 9.5 per cent slide in first-half revenue and a 13 per cent drop in profitability.

It comes as the Australian beer market remains challenging and it was forced to book an inventory revaluation at the start of the year due to lower milk prices.

Lion, whose stable includes XXXX, said overall net sales revenue was down 9.5 per cent to $2.176 billion and portfolio changes contributed to a 12.9 per cent decline in operating earnings to $334.7 million.

“Lion continued to perform strongly during a period where one-off events significantly affected this result, including the end of our relationship in Australia with AB Inbev, our decision to sell Fine Wine Partners and a global shortage in juice raw materials,’’ said Lion chief executive Stuart Irvine.