LONDON (Brand Republic) – Sales of Foster’s and John Smith beers have help boost profits at brewer Scottish & Newcastle.
The company saw profits rise to £415m, up 3% on the previous 12 months. Sales for the year to April 30 hit £3.6bn, up from £3.3bn last year.
However, results disappointed the city and the brewing and pubs group saw its share price slide. Shares dropped 8.6 % to 482p in early trading this morning.
Volatility in its share price was further increased by the announcement that a fire at one of its Center Parcs sites in the Netherlands will delay the sale of the company’s leisure division.
Scottish & Newcastle, the beer division of Scottish Courage, also saw its five main beer brands increase market share. Foster’s is already the second biggest seller in the UK market, behind Carling.
Scottish Courage recently acquired most of the French food and drinks group, Danone, in a deal valued at £1.7bn. The deal makes the British company one of Europe’s largest drinks groups.
The deal gave it control of brands including Kronenbourg, the number one beer in France, and Peroni, the number two beer in Italy.