| Tue 31 Jul 2007, 12:05 | | SAB - SABMiller Plc - SABMiller Plc interim manage |
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SAB
SOSAB
SAB - SABMiller Plc - SABMiller Plc interim management statement
SABMiller Plc
JSE ALPHA CODE: SAB
ISSUER CODE: SOSAB
ISIN CODE: GB0004835483
31 July 2007
SABMiller Plc interim management statement
At the Annual General Meeting of SABMiller plc (SABMiller) today, Graham
Mackay, chief executive of SABMiller, commented on the group`s performance for
the three months ended 30 June 2007. The calculation of the organic growth
rates included below excludes volumes for acquired businesses for the first 12
months after an acquisition.
Mr Mackay said: "The group has made a strong start to the year, recording 17%
growth in lager volumes, with organic growth of 13%, and achieved a good
financial performance in the first quarter, in which revenue growth was
partially offset by higher input costs and increased investment across the
business.
"In Latin America, lager volumes for the quarter rose by 12%. Strong volume
performances in Colombia and Peru reflect continuing favourable economic
conditions and the ongoing impact of our initiatives to rejuvenate the beer
category. These initiatives include the introduction of new containers and
brands and increased investment in marketing as well as in merchandising. In
Colombia, our biggest brand, Aguila, has been relaunched successfully in the
quarter and we are restructuring our route to market. In Peru, volumes of our
leading brand, Cristal, remain strong following the recent packaging changes
and have led to continuing share gains.
"Our Europe business once again performed strongly, with volume growth of 17%
and share gains in most markets. April and May sales were particularly strong,
assisted by warm weather across the region, although June experienced wetter
weather resulting in lower volume growth in the month. Poland achieved growth
of 20% across the portfolio, notwithstanding challenging comparatives which
included the benefits of the soccer World Cup. Volumes in Russia were also up
by 20% led by Zolotaya Bochka, MGD and Redds, although this strong growth is
leading to some capacity constraints. Romania grew by 52%, driven by our
Timisoreana brand and the success of its new PET packaging, and benefiting
from increased capacity introduced in the first half of the prior year. Czech
Republic achieved domestic growth in volumes of 10%, led by our Gambrinus and
Kozel brands. In Italy, branded domestic volume increased by 3%.
"In North America, Miller`s US domestic sales to retailers (STRs) increased by
4.6% compared to the prior year, but were down 0.7% on an organic basis
(excluding Sparks and Steel Reserve, acquired in August 2006) as Miller drove
higher pricing across its portfolio. Miller Lite brand volumes were level
with the prior year and STRs of the worthmore portfolio, including Sparks,
were up 63%. As Miller continues to migrate its brand portfolio to higher
growth worthmore brands, the Peroni, Leinenkugel`s and Sparks brands all
delivered double digit volume growth. Early in its national rollout, Miller
Chill delivered strong volume growth well ahead of target.
"The Africa & Asia business achieved organic growth of 23% in lager volumes,
with China continuing to record strong growth. In Africa (excluding Zimbabwe),
lager volumes grew by 5% on an organic basis, with a good start to the year in
Tanzania and Mozambique and growth in Botswana after two difficult years.
"In South Africa, our lager volumes were up 4%. This performance reflects
growth across all of our brands, with good growth in the mainstream segment
and the successful launch of our premium brand, Hanza Marzen Gold, in early
May. Soft drink volumes grew by 13% reflecting the favourable weather
conditions prevailing in April and May, and ongoing trade restocking following
some carbon dioxide shortages at the end of the prior year.
"Our South African holding company has recently raised R1,600 million
(approximately US$230 million) in 5-year notes. The notes, issued under a
R4,000 million Domestic Medium Term Note Programme, are guaranteed by
SABMiller plc and are listed on BESA, the South African Bond Exchange. The net
proceeds of the bond issue have been used to repay part of existing loan
facilities that were utilised by The South African Breweries Ltd"
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 2007, the group reported US$3,154 million in
adjusted pre-tax profit and revenue of $18,620 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 www.sabmiller.com
Enquiries:
SABMiller plc
Tel:+44 20 7659 0100
Sue Clark Director of Corporate Tel:+44 20 7659 0184
Affairs
Gary Leibowitz Senior Vice President, Tel:+44 20 7659 0119
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: 31/07/2007 12:05:02 Produced by the JSE SENS Department.
