Blog: S&N - reaping the rewards of its balancing act
Olly Wehring | 20 February 2007
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?
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