UPDATE 1-Lion Nathan says Q1 revenue up, lowers yr forecast

WELLINGTON, Feb 14 (Reuters) - Australia's second-biggest brewer Lion Nathan Ltd (LNN.AX: Quote, Profile, Research) lowered its full-year profit forecast by around 2 percent on higher costs but reported higher first-quarter revenues, sending its shares higher.

The company said it now expected a year profit of between A$265 million and A$275 million ($237 million-$246 million), down around A$13 million, reflecting its acquisition of the Boag brewing company and other costs.

"Our business has continued to perform strongly in the first quarter of 2008 reflecting good momentum in all our business segments," said chief executive Rob Murray in a statement.

Last year, Lion Nathan posted a net profit of A$267.2 million and in November forecast a profit of A$270-280 million, with expectations of a significant improvement in 2009.

Shares in Lion Nathan, 46 percent owned by Japan's Kirin Brewery (2503.T: Quote, Profile, Research), last traded up 2.7 percent at A$9.48, having traded between A$8.13 and A$9.99 over the past year.

Analysts expect the 2008 year profit to be A$272 million, according to a Reuters Estimates survey of nine analysts.

However, it said group revenue in the three months to Dec. 31 was up 6 percent, despite a fall of 1 percent in beer volumes, as consumers continued to switch to higher-margin premium beers and away from mainstream brands.

Lion's premium brands, including Tooheys Extra Dry, Hahn Super Dry and XXXX Gold, all did well.