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Tough market conditions for Lion Nathan National Foods

During its trading update, Lion Nathan National Foods (LNNF) explained its struggling sales on tough market conditions.

Owned by Japanese food and beverage conglomerate Kirin, LNNF acknowledge that the dairy and juice divisions were a long way from achieving an acceptable return on invested capital and faced considerable headwinds.

With a contracting Queensland market, caused in large part by the floods earlier this year, LNNF’s market share has fallen slightly and its revenues of $430.2 million, is down 11%.

LNNF CEO Rob Murray said: “Rising interest rates and power costs, increased saving and the ongoing economic uncertainty have impacted consumer spending in the FMCG and retail sectors in both Australia and New Zealand. Conditions in the December quarter were particularly challenging.For LNNF, this flowed into early 2011 where circumstances were compounded by two external shocks, the earthquake in Christchurch and floods in Queensland.”

Among LNNF’s portfolio of food and beverage brands are Dairy Farmers, Hahn, Berri, Boag’s, Yoplait, Wither Hills and Coon.
 

 

Image courtesy of https://food-information.info

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