| Tue 25 Sep 2007, 7:30 | | SABMiller Executives Highlight Strong |
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SAB
SOSAB
SAB - SABMiller Executives Highlight Strong, Broad-Based Lager Growth Across
The Group With Volume & Margin Recovery At Miller
SABMiller plc
JSEALPHA CODE : SAB
ISSUER CODE: SOSAB
ISIN CODE: GB0004835483
24 September 2007
SABMiller executives highlight strong, broad-based lager growth across the
group with volume and margin recovery at Miller
At an investor presentation in New York today, SABMiller`s senior management
team will reiterate its confidence in the group`s future growth prospects in
a series of presentations focused on the strategic drivers in the company`s
main markets.
As a group, SABMiller has continued its strong start to the year, with
organic growth in lager volumes of over 11% for the five months to the end
of August 2007, driven by Africa & Asia, Latin America and Central and
Eastern Europe.
In North America, Miller`s domestic sales to retailers (STRs) have increased
by 1.3% on an organic basis after an adjustment for one less trading day in
the five month period, with Miller Lite STRs up by 1.7%. Miller`s strategy
to grow Miller Lite in the mainstream light category and to migrate its
brand portfolio to higher margin segments has contributed to an increase of
4.0% in domestic net revenue per barrel. Miller Chill, the company`s new
`chelada style` light beer, sold almost 300,000 barrels in the period and is
well on its way to exceeding its target of 400,000 barrels for the year,
whilst volumes of the group`s international worthmore brand Peroni Nastro
Azzurro, and craft beer Leinenkugel`s, are up by strong double digit
percentages. As a result of this volume performance, the improving sales
mix and further cost efficiencies, Miller expects to see margin improvement
significantly in excess of 50 basis points in the current year.
In Europe, where the group has grown organic constant currency EBITA by
almost 20% in each of the past 6 years, the group continues to drive strong
volume growth and to take market share despite intense international
competition. As these mainly Central and Eastern European markets develop,
SABMiller is exploiting its ownership of the most valuable brand portfolios
in these countries, improving mix through the development of innovative
worthmore products and leading mainstream brand propositions.
SABMiller`s operations in Latin America offer significant potential for
future growth given historical under-investment in the beer category. The
group is now putting substantial expenditure behind improvements to the
image of its products and in developing strong portfolios of differentiated
brands that appeal to a wider range of consumers and drinking occasions.
Further investment in the group`s production capacity, route to market and
retail points of sale, through initiatives such as fleet upgrades, telesales
operations and the enhancement of merchandising, will further support top-
line growth. These investments are also expected to enhance margins in the
medium term, although the effect will be to constrain them in the near term.
Whilst the business has recently enjoyed a period of unexpectedly high
volume growth during the initial implementation of the group`s plans, this
growth is expected to moderate over the remainder of the year.
The favourable economic landscape in South Africa will continue to underpin
future volume and revenue drivers in both lager and soft drinks as the group
invests to rejuvenate the mainstream beer category and to enhance its
competitive position in the worthmore product segment. Building on the
success of Peroni Nastro Azzurro and the recently launched Hansa Marzen
Gold, the group will consider further new product launches in addition to
improving market penetration through the expansion of trade licensing and
direct delivery. The reintroduction of the Amstel brand following the
contract termination earlier this year appears to have been delayed,
limiting the anticipated financial impact to US$40-50 million in the current
year.
SABMiller`s Africa & Asia operations are also growing rapidly. In China,
the group`s joint venture has become the country`s leading brewer and its
main brand, SNOW, is also the country`s largest lager brand with a 10% share
of the market. In India, where the group`s market share is approaching 35%,
the recent acquisition of the Foster`s brand is driving excellent growth in
its mild beer portfolio. Elsewhere in Asia, SABMiller has recently
commenced operations in Vietnam and it continues to seek further
opportunities in the region. The development of African economies is
creating opportunities to cater to a range of consumers with increasingly
full brand portfolios. The group is investing in significant additional
capacity and extending distribution to further extend its growth and
leadership across the African continent.
The investor presentation and Q&A will be broadcast live by webcast on the
company`s website, www.sabmiller.com beginning at 13.30 EDT / 18.30 British
Summer Time. A replay will be available following the presentation. A
trading update for the group`s first fiscal half will be published on 15
October, 2007.
Ends
About SABMiller plc
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
adjusted pre-tax profit and revenue of US$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.sabmiller.com or www.newscast.co.uk
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 894 265
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: 25/09/2007 07:30:01 Produced by the JSE SENS Department.
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