Scottish & Newcastle (S&N) has reported a 13.9% rise in full year pre-tax profit to £452m.
The group said that revenue rose by 7% to £4.15bn during the year, with own branded beer and cider volumes up by 5.8% and net sales by 8.9%.
Operating profit increased by 10.1% to £535m.
The company also announced it plans to cut £50m of costs over the next three years, through a streamlining of its back office activities and by maximising efficiencies across its production and distribution facilities.
In the UK, operating profit rose by 1.5%, which the company said was influenced by an accelerated shift from the on- to the off-trade, plus increase in commodity and energy prices.
UK net sales of its top four brands, Foster’s Kronenbourg 1664, John Smith’s and Strongbow, were up by 6.9%, while volumes increased by 6.8%.
The company predicted that the UK on-trade will see a 5% decline in market volumes in 2007, of which 2.5% will be from the six month impact of the smoking ban. It believes that the implied net impact on profit of the smoking ban will be approximately £10m in 2007.
Internationally operating profit dropped by 1.1%, while revenue increased by 1.2% to £1.57bn.
Operating profit through Baltic Beverages Holding (BBH), the company’s east European brewing joint venture with Carlsberg, rose by 43%, helped by a 23% increase in net sales.
Sir Brian Stewart, S&N chairman, said: “S&N has made strong progress throughout the year by continuing our strategy of developing a portfolio of brands across our markets worldwide.
“This portfolio strategy has given us leading positions in key mature markets such as the UK and France as well as Baltika's leadership of the massive and dynamic Russian market.
“Other parts of the BBH business, and our joint ventures in India and China also give us exposure to new and exciting markets.”
The company said that trading for the first few weeks of the year has started well and overall was in line with expectations.
