Scottish & Newcastle have reported a "robust performance" for the year to 27 April.

Turnover rose 19 per cent to £4985.6m, operating profit was up 22 per cent to £657.9m and EBITDA climbed 20 per cent to £826m. Pre-tax profit for the period was £507.3m, up from £442.3m.

UK beer experienced good performances from Foster’s, John Smith’s and Kronenbourg 1664, although operating profit – down 8.9 per cent to £186.1m – was affected by higher than expected costs incurred in a supply chain re-organisation.

International beer saw operating profit up 6.5 per cent to £139.4m. Beer consumption in Western Europe – affected by poor summer weather, low economic growth and falling consumer confidence – was weak all year, but operating profit benefited from a strong Euro and the ending of royalty payments to Danone. Without them, growth would have been 1 per cent.

Newcastle Brown Ale had a further good year in the U.S., with volume sold up by more than 10 per cent.

Hartwall and Baltic Beverages Holding (BBH) between them produced an "excellent" first time profit contribution of £108.1m. Both are leaders in their respective markets, with Hartwall having a 45 per cent market share in Finland and BBH a 34 per cent share in Russia, 46 per cent in the Baltic states and 20 per cent in the Ukraine.

Commenting on the results, S&B chief executive, Tony Froggatt, said: "Our core strengths of excellent brands and strong market positions have enabled us to produce a robust performance through a difficult period for beer markets across much of Europe."

S&N Retail – which includes the Chef & Brewer, Premier Lodge and John Barras brands – saw operating profit up 6.5 per cent to £227.7m, on total turnover up 3.9 per cent to £1,047.9m. Turnover from food across the sector rose 7.8 per cent and from accommodation, 18.9 per cent. Chef & Brewer sales were up 10.6 per cent and REVPAR at Premier Lodge increased by 9 per cent.

Since the year end, S&N has announced the sale of its managed retail business, a decision reached after negotiations over a "sale and manage-back" arrangement for part of its portfolio revealed a number of institutions interested in buying the entire estate. The sale – being effected through an auction – is ongoing and completion is anticipated before the end of 2003.

Of the decision to sell, Froggatt said: "We believe it is the correct one for shareholders and for the development of the retail business."

Elsewhere, on 13 May S&N announced its agreement to buy the 51 per cent of Portuguese brewer, Central de Cervejas, which it does not already own, along with 100 per cent of Sociedade da Agua de Luso, a producer of branded mineral and spring water.

Also, a recommended cash offer launched on 15 May for cider-makers, H.P.Bulmer, was declared unconditional on 30 June.

Looking ahead, the company said that prospects for S&N’s major Western European markets were difficult to predict, with many beer markets in Europe and beyond being weak during the first part of 2003.

However, recent trading has been more encouraging and market conditions in the second half of the year are likely to be easier than those in the first half. Nonetheless, the company feels that "persistent low consumer confidence makes us cautious as to the extent of the recovery overall". Details: www.scottish-newcastle.com