UK: Adnams warns on H1 profits
Adnams predicts tough times ahead
UK brewer and pub owner Adnams has warned that half-year profits are likely to fall due to tough marketing conditions.
Profits for the six months to the end of June are not expected to reach the GBP591,000 reported for the same period of last year, Adnams warned yesterday (26 April).
The news is a sign of ongoing difficulty for the UK's brewing, wine merchant and pub sectors.
"The year has started slowly for us," Adnams told shareholders at its annual general meeting. "The weather in the early months has been poor, the beer market has seen further declines, and consumers are being cautious in the face of the impending general election and the expectation of tax increases."
The group added that its wine and shops business has struggled to generate profits.
However, Adnams said it has appointed an experienced retailer to push the division. The group added that it will continue to invest for the long-term.
Adnams' net profits for 2009 reached GBP2.3m (US$3.4m), more than double the GBP1m achieved in 2008 but significantly lower than income of nearly GBP7m in 2007.
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