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 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."
