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News
Buisness Stockmarket: Russian hit for S&N
Scottish & Newcastle’s joint venture in Russia and the former USSR, BBH, saw its Baltika beer establish itself as one of the globe’s strongest brands. BBH announced that sales were up by 14.5%, with operating profits frothing up to nearly 30%.
In the UK, S&N saw profit margins fall as football fans scooped up bargain-size packs of beer. However, the fall in margins was more than balanced by gains in market share and higher sales during the tournament.
S&N reveals encouraging progress, particularly in promoting premium brands in the aggressively competitive French market.
Pre-tax profits for the half-year to 30 June were £128m, up 42% on the £90m made in 2005. Sales rose from £1.57bn in 2005 to £1.6bn in 2006. The developing markets of the former USSR, India and China are all important growth areas.
Cost-saving programmes linked to specific markets are taking place as planned, and S&N plans to reveal its new group-wide cost-saving programme next February.
© db September 2006