Foster's Group has blamed the fluctuating dollar for some of woes, with the beer and wine producer reporting an 88.4pc fall in net profit as it encounters continued pressure on its worldwide wine business.

Net profit, after $606 million in write-downs on Foster's Australian and Californian wine businesses, was $111.7 million.

Total revenue fell 4.2pc to $4.56 billion.

Acting chief executive Ian Johnston — in the job while the company conducts a global search for a replacement for Trevor O'Hoy — said Foster's Group "might have done better".

"These results do not meet our own expectations," he told investors.

Earnings before interest and taxes on wine were down 1.8pc to $392 million, in part because of a decline in Foster's US markets.

However, Mr Johnston, who said he was not on Foster's CEO shortlist, said the volatile Australian dollar had affected the global wine sector's earnings by about $70 million in 2007-08.

The global economic slowdown and higher grape prices had also affected performance, he said.

The company's entire wine business is under review, a review that will be completed by the end of the year. Chairman David Crawford said all options would be considered.

In contrast, earnings before interest and taxes on beer, cider and spirits in the Australia and Asia-Pacific regions rose by 8pc, to just over $780 million.

Brands such as VB, Carlton Draught, Pure Blonde and Crown Lager continue to perform well for Foster's Group.

At $713.2 million, net profit before significant items was slightly higher than the $701.4 million forecast by Goldman Sachs JBWere. Citi analyst Andrew Bowley said the "relatively clear" result was also ahead of his expectations with net profit before significant items at the top of the guidance range of $700 to $715 million.

"With few surprises in the result, investor attention will turn to the strategic wine review and the search for a new CEO," he said.

"We are confident that both will be concluded by calendar year end and remain positive catalysts for the stock."

Mr Bowley has placed a 12-month target price of $5.70 on the stock, 29¢ higher than yesterday's closing price of $5.41.

However, even with yesterday's 8¢ gain, Foster's shares have fallen 18.6pc this year, in line with falls in the consumer staples sector.

Foster's Group will pay a fully franked dividend of 14.25¢, taking the total dividend for the year to 26.25¢ a share.