Currency affects Carlberg AS earnings

Carlsberg AS said currency effects and increased costs had a negative impact on full-year earnings at Baltic Beverages Holding (BBH), in which it has a 50% stake.

It said that profits for the full year and fourth quarter of 2003 were affected by currency and increased costs within the business.

Sales for the year were down 6% to €1.161bn.

Referring to its Russian brand, the group said: "Two new breweries and major changes to Baltika's sales and distribution network will, however, strengthen BBH in 2004 and beyond".

During 2003, although the rouble appreciated by 2% against the US dollar, it depreciated by 17% against the euro, compared with the average exchange rates for 2002.

Scottish & Newcastle PLC hold the other 50% of BBH, and its beer division, Scottish Courage is the number one brewer in both Britain and Europe.