Olly Wehring

S&N - reaping the rewards of its balancing act

By: Olly Wehring - 20 February 2007 16:40

RSS Feed Follow us on twitter

UK brewer Scottish & Newcastle thinks it has got the balance of its business just about right.

S&N, which today (20 February) posted a 7% rise in full-year revenue and a 10.1% hike in operating profit, gave a breakdown of its figures showing just how important both sides of that balance are to each other.

On the one hand, there is UK and Western Europe - the dullest beer markets in the world, in one sense. The two markets delivered slow profit growth of 1.5% and 1.1% respectively for S&N in 2006. Total operating profit from the two came in at GBP384m (US$750.5m) for the period.

Over at Baltic Beverages Holding, S&N’s joint venture with Carlsberg, operating profit was a bit more colourful - up a massive 42.9% to GBP160m for the year.

By the group’s own admission, the year was a game of two halves – “The dullards of the UK and International (Western Europe) are providing all the cash,” said John Dunsmore, managing director of S&N UK.

Dunsmore was quick to wave the figures under critics who believe the brewer is over-exposed to mature markets. He said: “It’s these mature businesses which are feeding our other operations with cash, allowing us to grow into new, developing markets.”

With the announcement, also today, that S&N has followed its operations in China and India with a new joint venture in Vietnam, could the company become more of a global force to be reckoned with in the future?

Comment on this blog Email this to a friend Print this page Share this blog

View next/previous blogs

Currently reading -

S&N - reaping the rewards of its balancing act

just-drinks tagline

Not a member? Join here