The company on Thursday also confirmed its previous guidance for a net profit before significant items of between $265 million and $275 million for the year to September 30.
In its third quarter trading update on Thursday, Lion Nathan said higher sales of popular brands such as XXXX Gold and Tooheys Extra Dry had helped boost total beer volumes for the nine months to June 30 by 3.3 per cent to 686 million litres.
Revenue was up seven per cent for the same period.
Lion Nathan also said that despite the impact of recent excise changes in the third quarter, spirits and ready-to-drink volumes were up.
"The company remains confident of its ability to step up earnings in the 2009 financial year consistent with analysts' expectations of operating net profit after tax (pre significant and one-time items) in the range of $295 million to $315 million," Lion Nathan said.
Analysts had expected the company to confirm guidance on Thursday but said management credibility depended upon delivering a significant step-up in earnings in 2009.
Lion Nathan chief executive Rob Murray said the company had been able to grow volume and revenue during difficult economic conditions.
"It is pleasing to see the investments we have made in our brands, our breweries and our people translating into strong results," he said.
"We expect to see further upsides from these investments as we step up our earnings in 2009."
Lion Nathan said it had fully integrated boutique Tasmanian brewer Boag's, which it bought in January for $325 million.
Beer volumes in Australia grew by 3.7 per cent to 550 million litres for the nine months to June 30.
Excluding Boag's, Lion Nathan's Australian beer volumes grew by 0.3 per cent.
Sales results for the Boag's portfolio were encouraging and new products such as Hahn Super Dry and Barefoot Radler were building momentum, the company said.
For the overall Australian beer market, volumes fell 1.3 per cent as a result of a wet summer on the east coast, but the market grew by 3.8 per cent in value.
In New Zealand, beer volumes lifted 1.8 per cent to 129 million litres. But volume growth slowed in the third quarter after an abnormally warm summer had boosted sales earlier in the year.
Speight's Gold Medal Ale and Steinlager Pure achieved solid growth.
Volumes in Lion Nathan's wine business lifted by 6.8 per cent despite lower than forecast sales to the United States following the sale of distributor Beam Wine Estates to Constellation Brands.
Lion Nathan said market conditions would continue to be challenging for the wine industry, due to lower consumer spending particularly in the US and United Kingdom.
The company said costs would increase by $30 million to $36 million in fiscal 2009, which was in line with previous guidance.
