S&N warns of more beer price rises

By Ewan Turney

- Last updated on GMT

Related tags: Smoking ban, Operating profit, United kingdom, English-language films

S&N warns of more beer price rises
Revenue at Scottish & Newcastle (S&N) was up 7.9% on last year to £4,150m - chiefly driven by "outstanding" results at Baltic Beverage...

Revenue at Scottish & Newcastle (S&N) was up 7.9% on last year to £4,150m - chiefly driven by "outstanding"​ results at Baltic Beverage Holdings (BBH).

In its last full year results as an independent company, S&N said operating profit was also up 5.7% to £560m in the 12 months to 31 December 2007.

Volumes at BBH, its joint venture with Carlsberg, grew 22.7% with operating profit up 42.6%.

The battle for BBH was at the centre of Carlsberg's joint 800p a share offer for S&N, which the board has recommended.

However, S&N warned of "substantial price increases"​ to mitigate a 8.5% rise in input costs.

UK Market

Despite the twin challenges of the smoking ban and poor summer weather branded volumes of cider and beer were up 0.1%.

It said its core brands of Foster's, Kronenbourg 1664, John Smith's and San

Miguel each gained share of the beer market.

S&N's branded cider portfolio enjoyed a good year with volumes up 15.1% in the UK market.

The company said, as per previous predictions, the net impact on profit from the smoking ban was £10m for the year.

Chief executive John Dunsmore added:"In the face of substantial challenges in terms of unprecedented bad summer weather, the UK smoking ban and the distraction of the consortium approach, it is very encouraging that S&N's outstanding portfolio of brands and leading market positions has still delivered revenue growth of +7.9% and operating profit growth of +5.7%.

"It is this powerful portfolio that has driven the Heineken/Carlsberg consortium to make the 800p per share offer that the Board is recommending."

Chairman Sir Brian Stewart added: "With recovery likely across western Europe, and clear outperformance in BBH, the S&N business model remains in robust good health."

Related topics: Beer

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