Little World Predicts Big Profit
By Andrew Starke
Little World Beverages has released encouraging half year results and has forecast that underlying profits may jump as much as 80 percent for the 2010 financial year.
The publicly listed Western Australian craft brewer recorded a total revenue increase of 18.3 percent for the six months to December 31 with net profit up 48.4 percent on the previous year.
Chief financial officer, Jason Markwart, told TheShout that much of the growth could be attributed to the extra production capacity of the company’s Freemantle and Victoria breweries, which are now in full operation, although he also cited ‘encouraging growth into the east coast market’.
Markwart replaced Todd Morcombe as CFO of Little World Beverages in January.
Fashionable on-premise establishments in Sydney have been quick to take-up the brewer’s quirky range, which includes the Little Creature’s range, White Rabbit dark ale and Pipsqueak cider.
“There is no doubt that on-premise operators are looking for a point of difference in the market and our range seems to be providing that,” said Markwart.
"White Rabbit and its imaginative label has been very well received … (and Pipsqueak cider) has achieved good volume growth.”
Little Creatures Pale Ale was recently named the fourth best beer in Australia and New Zealand by ratebeer.com, while the same beer headed The Local Taphouse’s list of top Australian craft beers.
Little World Beverages' directors anticipate that the company will be able to announce a net profit of between $5.7 million and $6.2 million for the year ending June 30, 2010.
Shares in Little World Beverages were trading at $2.35 at 1pm today (Feb 24), up from $2.10 seven days ago.