A steady pour of profits despite inclement summer weather

The UK's biggest brewer said that beer sales have recovered since the end of the summer and this year's forecasts should be met.

S&N said it had decided to issue a trading update after a run of profit warnings from consumer goods groups.

Its top brands include Foster's, John Smith's, Strongbow and Kronenbourg.

Summer blues

S&N said the UK beer market had been relatively weak during the summer as the bad weather was compounded by a drop in off-licence sales following the end of the Euro 2004 football championships.

We have seen a difficult trading environment, but we are performing well within the market Ian McHoul, finance director

But trading picked up in September, the company said.

In France, however, the picture was less cheery, with overall beer volumes "markedly lower" in July and August than in 2003.

"The French beer market will decline by around 6% for the full year," the company said.

Overall, S&N said cash flow was still strong and this was expected to continue to be the case.

"We have seen a difficult trading environment, but we are performing well within the market," said S&N's finance director Ian McHoul.

Shares in S&N were up 14.5 pence, or 3.79%, at 397.5 pence by the close of trade on Wednesday.