UK market drives S&N growth
Scottish and Newcastle has seen 'good progress' across the first half and the company starts to see the benefits of its focus on brewing.
In the six months to June 30, total turnover fell from £2,523m in the first half of 2003 to £2,382m, reflecting the sale last autumn of the Scottish & Newcastle retail managed pub business to Spirit Group.
Comparable turnover was up 4 per cent, with comparable operating profit up 7 per cent to £202m.
The UK outperformed S&N's other markets, with operating profit up 19 per cent domestically compared to 4 per cent internationally.
Chief executive, Tony Froggatt (pictured) said "S&N has made good progress over the last twelve months as measured against our key performance indicators. Organic growth in beer volumes of 6 per cent matches the best of international brewers and we gained market share in all our key markets except Russia.
He added: "Our UK business has performed particularly well and these results show a strong turnaround from 2003. Our four key brands, Foster's, Kronenbourg 1664, John Smith's and Strongbow grew strongly with total volumes up 9 per cent.
"There were also significant improvements in operational efficiency, including synergies from the successful integration of Bulmer."
S&N has increased marketing spend on its key UK brands by 12 per cent, with new TV campaigns for Foster's, John Smith's and Strongbow.
Spending on innovation saw the launch of new products including Foster's Superchilled and John Smith's Extra Cold.
However, the company that curent trading is suffering in comparison with the hot summer in 2003, meaning sales comparatives in western Europe "are more difficult for the second half of the year and trading in July has been weak due to disappointing weather conditions".
