Foster’s Group posted a net loss in 2009/10 of $464 million but says it remains on track for the possible demerger of its beer and wine businesses in the first half of calendar year 2011. Chief executive officer Ian Johnston said the evaluation of issues, costs and benefits of a potential demerger were on schedule. The separation of the company’s wine and beer operations in Australia is now substantially complete. Included in this result is the likely cost of this demerger process, the returns on the recent vineyard sales and a non-cash impairment of $1.163 billion against the carrying value of its wine assets. With operating revenue down 4.8% at $A4.461 billion, the beer side of the business still delivered a solid result in the second half of the year. The wine business, now called Treasury Wine Estates, generated stronger earnings in the second half. Foster’s declared no final dividend for 2009/10.
