For the past 23 years, Coopers has enjoyed compound sales growth of 9.2 per cent, at a time when total Australian beer sales have been contracting.
Coopers Managing Director Dr Tim Cooper said packaged beer sales during 2015-16 had risen by 3.8 per cent, while keg volumes had also recorded a small but pleasing rise of 0.8 per cent.
Higher malt costs and competitive pressures in the marketplace squeezed margins despite the increased beer sales.
Dr Cooper said Coopers’ revenue for 2015-16 had increased by 4.6 per cent to $245.9 million.
Fully franked dividends of $12.50 a share were paid, up from $12 the previous year.
Net profit after tax for the year fell by 16.3 per cent to $24.2 million from $28.9 million in 2014-15 due to preparation costs for a new $63 million malting plant at Regency Park, the largest single item of capital expenditure in Coopers’ history, and a required $7.5 million write-down of goodwill for the US-based business Mr Beer.
“While the business initially returned good profits, recent competition from other DIY brewing businesses and the loss of some key accounts meant we had to recognise an impairment of goodwill,” he said.
“Work on the plant is being undertaken by South Australian firm Ahrens and comprises three steeps, four vessels, a kiln and grain silos, connected to the brewery by an overhead gallery,” Dr Cooper said. “Work is progressing well and is on line to be completed by late next year.”
Coopers will use one-third of the 54,000 tonnes of malted barley produced yearly at the new plant and leave the remaining two-thirds for export.
“The new plant will guarantee our supply of high quality malt for future growth,” he said. “It also marks Coopers’ return to the malting business after the sale in 2002 of Adelaide Malting Company to Ausbulk to help fund the move from Leabrook to Regency Park.”
“Coopers purchased a majority share of Mr Beer in 2011. Our initial $11.3 million investment has so far returned $5.3 million.”
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