Scottish & Newcastle PLC on Tuesday reported a $205 million loss for 2007, expected to be its last annual report before the company is split between brewers Heineken NV and Carlsberg A/S.
The company swung to a loss after turning a profit of 303 million pounds ($592 million) in 2006. Losses were partly because of 430 million pounds ($841 million) in one-time items, including a 379 million pound ($987 million) loss on the sale of a large stake in its wholly owned French on-trade wholesaling business.
The company, which reported revenue was up 7.9 percent to 4.15 billion pounds ($8.1 billion), said sales were affected by poor summer weather in Europe and a new ban on smoking in English pubs.
Scottish & Newcastle's board is backing an 800-pence per share (15.64) bid from Carlsberg and Heineken which values the British company at 7.8 billion pounds ($15.25 billion)
If the deal goes through, Copenhagen-based Carlsberg would gain sole ownership of Baltic Beverages, its Russian joint venture with S&N, and S&N's French, Greek and Chinese operations.
Amsterdam-based Heineken would take control of its British, American, Indian and other markets.
Baltic Beverages operates 19 breweries, holding the top position in the Russian, Baltic and Kazakh beer markets, and ranks third in Ukraine. Its brands include Baltika, Arsenalnoe, Slavutich and Alma-Ata.
On the Net: http://www.scottish-newcastle.com