Australian brewing and winemaking group Foster's has reported a 4.1% increase in half-year profits thanks to premium beer drinkers.

Net profits to December were A$335.3m (£121.9m; $198.4m) after the domestic beer market grew for the first time in two years.

Last year, Foster's launched premium brands Carlton Sterling and Matilda Bay which retail at higher prices than other lagers, but do not cost much more to produce.

But chief executive Ted Kunkel warned it would be "hard" to meet its full-year target of 10% growth.

The results were just above analysts expectations.

Toasting wine

The downturn in beer in recent years has push Foster's into the wine market and it purchased US vintner Beringer in 2000.

Last year wine revenues overtook those from beer for the first time.

The company's brands include its internationally marketed Foster's Lager, Victoria Bitter and Australian winemaker Wolf Blass.

Foster's said it was looking for some small acquisitions in the coming year.