| Mon 15 Oct 2007, 8:00 | | SAB - SABMiller Plc - Trading update |
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SAB
SOSAB
SAB - SABMiller Plc - Trading update
SABMiller Plc
JSE Alpha Code: SAB
ISSUER Code:SOSAB
ISIN Code:GB0004835483
15 October 2007
SABMiller plc Trading Update
SABMiller plc today provided an update regarding trading during the six-month
period to 30 September 2007, which is the first half of its financial year. The
calculation of the organic growth rates included below excludes volumes for
acquired businesses for the first 12 months after an acquisition.
As communicated on 24 September 2007 SABMiller has continued its strong start to
the year, with organic growth in lager volumes of 11% for the six months ended
30 September 2007. The growth in revenue has been partially offset by higher
input costs and increased investment across the business whilst financial
performance for the six months remains in line with management`s expectations.
In Latin America, lager volumes rose by 8%. Whilst South America has enjoyed a
period of high volume growth during the initial implementation of the group`s
plans, this growth has moderated in recent months as expected. In Colombia,
lager volumes have grown more than 7% in the half year. Slower growth was
recorded in the latter part of the period, off a high base in the prior year.
The Colombia operation continues with the major restructuring of its route to
market network and the phased relaunch of the market leading Aguila brand. In
Peru, volumes are up 10% in a market which remains highly competitive. The
business continues its significant investments across the region in route to
market, brand building and merchandising which are expected to constrain margins
in the short term.
Europe achieved organic growth in lager volumes of 12%. Sales in the first two
months of the half year were particularly strong, assisted by warm weather, but
volumes moderated somewhat in the later months. Poland achieved growth of 13%
across its portfolio, notwithstanding challenging comparatives. Volumes in
Russia were up by 18% with all brands contributing to this growth. Romania grew
by 37%, boosted by the increased capacity introduced in the prior year and
driven by the ongoing success of the Timisoreana brand and its new PET
packaging. In the Czech Republic good volume growth of 3% was achieved.
In North America, Miller`s domestic sales to retailers (STRs) increased by 5.9%
over the prior year, and were up 1.4% on an organic basis (excluding Sparks and
Steel Reserve, acquired in August 2006), with Miller Lite STRs up by 2.1%.
Miller`s strategy to grow Miller Lite and to migrate its brand portfolio to
higher margin segments has contributed to an increase of 3.9% in domestic net
revenue per barrel. Miller Chill, the company`s new `chelada style` light beer,
continues to trade above expectations whilst volumes of the group`s
international worthmore brand Peroni Nastro Azzurro and craft beer Leinenkugel`s
are up by strong double digit percentages.
SABMiller`s Africa & Asia operations have again grown rapidly and achieved
organic growth of some 20% in lager volumes, driven by China where volumes have
increased by 22%. In Africa (excluding Zimbabwe), lager volumes grew by 6% on
an organic basis, with 11% volume growth in Botswana after two difficult years
and very good performances achieved in Tanzania and Mozambique.
In South Africa, our lager volumes were up 2% with stronger growth in the
mainstream segment and following the successful launch of our premium brand,
Hanza Marzen Gold, in early May. Recently volume performance has been somewhat
constrained due to a combination of local supply shortages and reduced
flexibility during new brand and pack introductions including the implementation
of our mainstream renovation programme. Soft drink volumes grew by 9%
reflecting favourable weather conditions and trade restocking in earlier months
following some supply shortages at the end of the prior year.
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: 15/10/2007 08:00:03 Produced by the JSE SENS Department.
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