|
U.K. brewer profit grows
|
 |
December 7, 1999: 10:29 a.m. ET
Scottish and Newcastle pretax earnings jump 7%; key brands drive growth
|
LONDON (CNNfn) - Scottish and Newcastle, Britain's biggest brewer, reported a 7.3 percent rise in six-month pretax profit Tuesday as a strategic focus on key beer brands drove strong improvements in market share and margin growth.
The beer and leisure company -- brewer of Courage, John Smith's, Miller Pilsner, Kronenbourg and its signature Newcastle Brown Ale brand -- also predicted that its recent 1.14 billion pound ($1.84 billion) acquisition of Greenalls pubs and restaurants would further boost growth in the near future.
Pretax profit, before exceptional items, grew to 222 million pounds in the six-month period through Oct. 31, the company said in a statement.
The board also declared an increased half-year dividend of 9.13 pence per share, up 7 percent from 8.53 pence last year.
Revenue increased 6.4 percent to 448.8 million pounds, while operating profits grew 3.5 percent to 99.7 million pounds.
Key beer brands experienced solid growth despite shrinking markets in Britain. Sales volume at Scottish Courage, the beer division, rose 0.3 percent in a market thought to have contracted by 0.5 percent. Foster's Lager volume gained 12 percent, Kronenbourg rose 7 percent, and John Smith's increased by 4 percent.
"The second half of the year has certainly started positively," Brian Stewart, the group's chief executive, said in a statement.
"The trading conditions that we will experience during the Millennium period still remain difficult to assess, even if initial indicators give some cause for optimism."
An improvement program began to reap anticipated results at Center Parcs holiday villages, the division that specializes in short-break holidays throughout continental Europe and Britain, the company said.
S&N's beer division accounted for 61 percent of 1999 revenue, while the retail division contributed 27 percent and the leisure division 12 percent.
Scottish and Newcastle runs more than 2,600 so-called "tied" pubs under logos such as Rat & Parrot, the Chef & Brewer and Old Orleans. Tied pubs must sell company beers and are restricted in what other beers they can sell.
Stewart said the company remained on course to meet its full-year expectations.
"As far as the rest of the year is concerned, we are confident in our ability to continue to outperform our competitors, develop our brand strength, improve efficiency levels and reduce our cost base," he said. 
|
|
|
|
|
|
Scottish and Newcastle
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
