Sun Interbrew, the Eastern European subsidiary of brewing giant Interbrew, has released first quarter results that saw net sales up 30% to US$56.1m due to a 7% increase in volumes and a 22% increase in average prices.

The operating results were better than market expectations, however net profits were still at a loss of US$0.6m.

Financial analysts United Financial Group said that taxation remained a problem for the company with $2m of taxes paid in the first quarter of 2001 paid out on its $2.1m pre-tax profit. "Overall, the bottom line in 1Q was compressed due to higher than expected SG&A and taxation charges," the analyst said.

However it continued: "Despite the net loss in 1Q01 we remain positive on the company given its strong operating results and maintain our buy recommendation."