Poor weather may hit summer sales

Scottish & Newcastle said its sales of Fosters, Kronenbourg 1664, Strongbow and John Smith rose 9%.

The firm said it was confident it will meet its full year targets, but warned that poor weather had already affected its July sales of beer.

Turnover at the firm, which brews Fosters and Kronenbourg in Europe, rose 4.2% to �2.382bn.

The results come as the company consolidates its four-year expansion spree. In recent years, it bought Kronenbourg and Finland's Hartwell, making it the biggest brewer in France and Russia as well as in Britain.

The company also bought Hereford cider maker Bulmer's.

"The good performance in the first half of 2004 gives us confidence that we will meet our financial and commercial objectives for the full year," said chief executive Tony Froggatt.

The company sold its managed British pubs estate in the second half of last year.

Scottish & Newcastle shares closed at 401.25 pence on Monday. The company raised its interim dividend by 2.5% to 6.87 pence.