By RACHNA LAL
Paradise Beverages (Fiji) Limited, the former Foster’s Group Pacific Limited, has commenced with its $44 million capital investment plan.
This was indicated by the company as it released the group’s unaudited financial results for the year ended June 30, 2013.
The company said this $44-million investment, by the new owners, will address many years of under-investment in the business.
The investment will include the upgrade of aged plant and equipment where appropriate across the Group’s four manufacturing sites.
This is aimed to improve product quality, deliver manufacturing efficiencies and deliver a platform for future growth, including export.
Paradise Beverages Pacific Operations general manager, Anthony Scanlan, said the investment would be funded through operating cash-flows and bank funding.
“For the year ended June 30, 2013, the group invested approximately $3.7 million, with further investment planned for the second half of 2013 of up to $25 million,” he said.
“This includes a major upgrade of Paradise Beverages’ Suva brewery and additional capital expansion including increased rum barrel storage at the Lautoka distillery.”
Financial performance
Meanwhile, Paradise Beverages’ recorded improved performance in what it described as a “challenging environment”.
Overall, the group’s consolidated sales revenue increased by 9.3 per cent driven by price increases and sales volume growth.
Its consolidated net profit after tax increased by 67 per cent whereby it recorded $7.27 million as profit for 2013 compared to $4.36 million in 2012.
Mr Scanlan said given the funding requirements for the $44 million “investing for growth” capital investment programme, the directors had recommended that not no dividend should be paid for the year ended June 30, 2013.