Hungarian brewery Brau Union Hungaria Sorgyarak Rt reported a 1.2 percent drop in 2002 pre-tax profits on Friday and said its share of a slightly rising market had dipped. Brau, the Hungarian unit of Austria's Brau Union AG, said pre-tax profits for last year slipped to 2.77 billion forints ($12.25 million) from 2.81 billion in 2001.

Net sales at the company, which has two breweries in Hungary, rose 8.8 percent to 32.40 billion forints from 29.77 billion, but material and staff costs rose at a faster rate. Brau estimated total beer sales in Hungary rose 3.9 percent in 2002 year-on-year to 7.43 million hectolitres -- around 73 litres per head on average. Brau sold 1.95 million hectolitres of beer in 2002, up by less than half a percent on 2001.

"Our market share narrowed to 26.1 percent from 27.1 percent in the previous year, so we stay in third position," the company said, though it claimed over 40 percent of the market for premium beers.

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