Scottish & Newcastle reported a £50m rise in first half pre-tax profit pegged back by costs in restructuring its supply chain, plus disruption in commissioning two new regional distribution centres.
The company said it anticipates to benefit from the cost savings programme by 2005 - a year behind schedule. However, it said disruption costs would be minimised service levels maintained during the transition period.
Interim pre-tax profit to October 27 rose to £234.2m from £184.5m last year on sales that increased by 19% to £2.59bn.
Whilst the total UK market grew by 0.6%, S&N's top five brands - Foster's, Kronenbourg, John Smith's, Miller and Beck's - increased total volumes by 4.7%.
Off-trade sales rose 6.3% due to promotional activity, particularly over the World Cup period - but which also led to drop in net selling price of 1.5%. The on-trade market fell by 2.1%, mainly due to poor summer weather.
The export division continued to perform well in the US market with sales volumes of Newcastle Brown Ale increasing by 9% and Kronenbourg 1664 was well received.
In Western Europe beer market volumes were down 6.4% overall, due to the wet and cold summer.
Hartwall/Baltic Beverages Holding gained market share in all of its territories - 33% in Russia, 20% in Ukraine and 46% in the Baltic countries.
Debt levels increased to £3.2bn from £1.6bn in October 2001, due to the payment of £1.5bn to Danone for Kronenbourg.
Chairman Brian Stewart said: “These results represent a strong performance in what have been challenging conditions: notably poor summer weather in much of Western Europe.”
Group MD Guy Dickson will retire at the end of December 2002, and the appointment of a new CEO is expected to be announced early in 2003.
The company said it anticipates to benefit from the cost savings programme by 2005 - a year behind schedule. However, it said disruption costs would be minimised service levels maintained during the transition period.
Interim pre-tax profit to October 27 rose to £234.2m from £184.5m last year on sales that increased by 19% to £2.59bn.
Whilst the total UK market grew by 0.6%, S&N's top five brands - Foster's, Kronenbourg, John Smith's, Miller and Beck's - increased total volumes by 4.7%.
Off-trade sales rose 6.3% due to promotional activity, particularly over the World Cup period - but which also led to drop in net selling price of 1.5%. The on-trade market fell by 2.1%, mainly due to poor summer weather.
The export division continued to perform well in the US market with sales volumes of Newcastle Brown Ale increasing by 9% and Kronenbourg 1664 was well received.
In Western Europe beer market volumes were down 6.4% overall, due to the wet and cold summer.
Hartwall/Baltic Beverages Holding gained market share in all of its territories - 33% in Russia, 20% in Ukraine and 46% in the Baltic countries.
Debt levels increased to £3.2bn from £1.6bn in October 2001, due to the payment of £1.5bn to Danone for Kronenbourg.
Chairman Brian Stewart said: “These results represent a strong performance in what have been challenging conditions: notably poor summer weather in much of Western Europe.”
Group MD Guy Dickson will retire at the end of December 2002, and the appointment of a new CEO is expected to be announced early in 2003.
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