| Thu 12 Apr 2007, 7:59 | | SAB - SABMiller plc - Trading Update |
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SAB
SOSAB
SAB - SABMiller plc - Trading Update
JSE ALPHA CODE: SAB
ISSUER CODE: SOSAB
ISIN CODE: GB0004835483
12 April 2007
SABMiller plc today issued the following update on trading for the 12 months
to 31 March 2007. The calculation of the group`s organic growth includes
volumes for South America from 12 October 2006, 12 months after it became
part of the group.
For the year to 31 March 2007, the group recorded 23% growth in lager
volumes, with strong organic growth of some 10%. Group financial
performance was in line with management`s expectations as good revenue
growth was partially offset by higher input costs and increased investment
across the business.
On a pro forma basis, South America lager volumes for the year rose by 12%
with growth accelerating in the final quarter to 14%. Strong performances
across the region reflect good economic conditions, improved market shares
and the impact of initiatives to rejuvenate the beer category. These
initiatives include brand renovations and launches, the introduction of new
containers and significantly increased investment in marketing and
merchandising at the point of sale. In Colombia, improved retail price
discipline has underpinned accelerating sales. In Peru, Cristal was
relaunched in December 2006 and has led our share gains in a market that
remains competitive. In Central America, carbonated soft drink (CSD) volumes
were up 6% and lager volumes up 8% on an organic basis for the year.
In Europe, lager volumes for the year grew by 11% on an organic basis with
the final quarter up by 15%. This has been driven by continuing good
performances from Poland, Russia and Romania, influenced by a mild winter,
and has resulted in market share gains in most countries. Poland has
achieved strong growth of 13% notwithstanding challenging comparatives,
reflecting particularly strong market execution and good growth of our Zubr
brand. Russia recorded volume growth of 24% across our portfolio of premium
brands, assisted by improved national distribution. Romania reported growth
of 23%, driven by our Timisoreana brand and its successful introduction into
PET packaging. Czech Republic achieved growth in volumes of 1%, led by our
Pilsner Urquell and Kozel brands. Branded volumes in Italy were up 5%
within our total domestic volume increase of 2%, reflecting our managed exit
from private label volumes.
In North America, Miller`s full-year domestic sales to retailers ("STRs")
were level with the prior year and down some 3% on an organic basis
(excluding Sparks and Steel Reserve), in line with Miller`s shipments to
wholesalers over the same period. In the fourth quarter, Miller`s STRs
declined by 2.3% on an organic basis. For the full year, Miller Lite STRs
declined 1%, and STRs of Miller`s worthmore portfolio, including Sparks,
grew by 21% with acceleration in the fourth quarter. While pricing improved,
profitability was impacted by significantly higher raw material and
packaging costs.
Our Africa and Asia business delivered organic growth of 27% in lager
volumes for the year, reflecting particularly strong lager volume growth in
China of 30% driven by our national brand, Snow. In Africa (excluding
Zimbabwe), lager volumes grew by 7% for the full year, with Tanzania
advancing 8%, helped by the launch of new packaging for Castle, and
Mozambique up 10%, benefiting from wider distribution and a strong economy.
Lager volumes declined a further 4% in Botswana which experienced difficult
economic conditions. CSD growth in Africa (excluding Zimbabwe) was 23%, led
by strong growth in Angola. In India, volumes increased by 36% on a pro
forma basis, benefiting from market deregulation in certain states. Our
joint ventures in Vietnam and Australia commenced operations in the fourth
quarter of the financial year.
In South Africa, lager volumes for the year increased by 2%, with fourth
quarter growth in volumes of 8% benefiting from particularly favourable
weather conditions. As noted in our statement of 13 March, SA Beverages is
no longer brewing, marketing or distributing the Amstel brand in South
Africa, but this has not had an impact in the current year. Soft drinks
volumes grew by 7% for the full year, benefiting from an increase in volumes
of 33% in the final quarter following an improvement in the supply of carbon
dioxide to our plants.
Ends
Notes to editors:
SABMiller plc is one of the world`s largest brewers with brewing interests
or distribution agreements in over 60 countries across six continents. The
group`s brands include premium international beers such as Miller Genuine
Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as an exceptional
range of market leading local brands. Outside the USA, SABMiller plc is
also one of the largest bottlers of Coca-Cola products in the world.
In the year ended 31 March 2006, the group reported US$15,307 million in
revenue and profit before tax of $2,453 million. SABMiller plc is listed on
the London and Johannesburg stock exchanges.
This announcement is available on the company website: www.sabmiller.com
High resolution images are available for the media to view and download free
of charge from: www.newscast.co.uk or via the News and Media section at:
www.sabmiller.com
Enquiries:
SABMiller plc
Tel: +44 207659 0100
Sue Clark Director of Corporate Tel: +44 207659 0184
Affairs
Gary Leibowitz Senior Vice President, Tel: +44 207659 0174
Investor Relations
Nigel Fairbrass Head of Media Relations Tel: +44 7799 894265
This announcement does not constitute an offer to sell or issue or the
solicitation of an offer to buy or acquire securities of SABMiller plc (the
"Company") or any of its affiliates in any jurisdiction or an inducement to
enter into investment activity.
This document includes "forward-looking statements". These statements may
contain the words "anticipate", "believe", "intend", "estimate", "expect"
and words of similar meaning. All statements other than statements of
historical facts included in this announcement, including, without
limitation, those regarding the Company`s financial position, business
strategy, plans and objectives of management for future operations
(including development plans and objectives relating to the Company`s
products and services) are forward-looking statements. These forward-
looking statements involve known and unknown risks, uncertainties and other
important factors that could cause the actual results, performance or
achievements of the Company to be materially different from future results,
performance or achievements expressed or implied by such forward-looking
statements. These forward-looking statements are based on numerous
assumptions regarding the Company`s present and future business strategies
and the environment in which the Company will operate in the future. These
forward-looking statements speak only as at the date of this announcement.
The Company expressly disclaims any obligation or undertaking to disseminate
any updates or revisions to any forward-looking statements contained in this
announcement to reflect any change in the Company`s expectations with regard
thereto or any change in events, conditions or circumstances on which any
such statement is based. Any information contained in this announcement on
the price at which the Company`s securities have been bought or sold in the
past, or on the yield on such securities, should not be relied upon as a
guide to future performance.
Date: 12/04/2007 07:59:50 Produced by the JSE SENS Department.
