S&N predicts increased profits

Brewer Scottish & Newcastle today said annual profits at its UK business would top last year thanks to better-than-expected market conditions in the pub trade.

S&N, which owns the Beamish & Crawford brewery in Cork, said it expected operating profits in its UK beer division in 2004 to come in slightly ahead of last year’s £148m (€222m).

It added that conditions in the on-trade in the first half – covering the six months to June 30 – had been slightly better than anticipated, although pricing pressures in the off-licence trade were continuing.

The group, which recently announced the closure of its Fountainbridge and Tyne breweries in Edinburgh and Newcastle with the loss of nearly 300 jobs, added that faster than expected efficiency improvements had also helped.

S&N has market leading positions in 12 European countries and an interest in 50 breweries around the world.