Increased sales for V&S Group

V&S Group’s operating profit improved by 18 per cent to SEK 1,634 million in the first nine months compared with 2005. Group net sales increased by 13 per cent to SEK 7,583 million. Profit after tax decreased with 6 per cent due to investments and increased tax cost.

The improved operating profit is due in equal parts to improved results in the ordinary course of business and to capital gains.

Business area V&S Absolut Spirits improved its sales by 13 per cent and operating profit by 7 per cent. Continued good growth for ABSOLUT VODKA in the US, on several markets in Europe and Asia, and the acquisition of Cruzan Rum have contributed to the increase in sales.

Business Area V&S Distillers decreased its profit by 6 per cent, while sales were down 3 per cent, mainly due to lower sales in Sweden and Denmark. V&S Wine doubled its profit, although from a low level. Sales decreased by 3 per cent.

“Our work with focusing on the core business and more profitable products, in combination with capital gains and a slight change in the US dollar exchange rate, contributes to our good operating profit ” says Bengt Baron, CEO of V&S Group.