| Thu 31 Jul 2008, 12:13 | | SAB - SABMiller plc - Trading Update |
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SAB
SOSAB
SAB - SABMiller plc - Trading Update
JSEALPHA CODE: SAB
ISSUER CODE: SOSAB
ISIN CODE: GB0004835483
31 July 2008
SABMiller plc Trading Update
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 2008*. The calculation of the organic growth rates detailed
below excludes volumes for acquired businesses for the first 12 months after an
acquisition.
Mr Mackay said: "The group recorded 1.5% growth in lager volumes. As expected
organic volume performance was subdued, with lager volumes down 1.6% following
the extraordinarily high growth of 13% in the prior year comparative period and
reflecting lower volumes in China and the moderation of consumer spending in
some markets. Group revenue growth has remained firm and financial performance
in the quarter was in line with the group`s expectations, although the
challenging trading environment in South Africa impacted financial performance
there.
"In Latin America, lager volumes for the quarter were in line with the prior
year, following double digit growth in the comparative period. However, lager
volumes in Colombia were 4% below the prior year, as retail price increases and
high consumer lending rates continued to inhibit consumer demand. In Peru, lager
volumes were 3% ahead of the prior year, with recent share gains in a market
that remains highly competitive. Our business in Ecuador delivered strong
performance with 14% lager volume growth as the market responded to the
reinvigoration of the brand portfolio and route to market.
"In Europe organic lager volume growth was 1%, following the exceptionally
strong volume growth of 17% in the prior year comparative period. Poland
achieved organic domestic volume growth of 6%, notwithstanding a challenging
comparative, driven by the Tyskie and Zubr brands, and has increased market
share. Romanian volumes grew by 22%, ahead of the market, led by the continuing
success of the Timisoreana brand. Volumes in Russia fell by 2% in a market which
was estimated to be down slightly. Czech Republic domestic volumes declined by
10% reflecting the cooler weather in the current year and consumer reaction to
sharply increasing inflation and beer price increases
*which constitutes SABMiller`s Interim Management Statement for the same period
"In North America, pricing remained strong but Miller`s US domestic volume sales
to retailers (STRs) decreased by 2.0% compared to the prior year. Miller Lite
brand volumes were 1.6% lower than the prior year, Miller High Life grew 0.9%,
Milwaukee`s Best declined 5.5% whilst STRs of the worthmore portfolio increased
by 8.1% with Peroni Nastro Azzurro, Miller Chill, Sparks and Leinenkugel`s
continuing to generate good growth.
"In our Africa and Asia business, organic lager volumes declined 4%, with China
organic volumes down 5% (prior year up 25%) affected by the earthquake in
Sichuan and consumer price inflation combined with significant beer industry
price increases. In Africa (excluding Zimbabwe), lager volumes grew by 8% on an
organic basis, with a good start to the year across the region led by Zambia,
Botswana and Angola.
"In South Africa, our lager volumes were down 3%. This reflects the strength of
volumes in the comparative period of the prior year which were up 4% and the
volume loss following the termination of a licensed premium brand with which we
now compete. Nevertheless, current market share reflected quarter on quarter
gains. Market volume and mix was negatively affected by softer consumer demand
with retail sales under pressure from higher interest rates and increasing food
and energy costs. Despite these pressures, soft drink volumes grew 3%. These
factors, combined with ongoing cost inflation and the currency weakness, have
impacted financial performance.
"We recently completed the acquisition of a 99.84% interest in the Ukrainian
brewer, CJSC Sarmat, which is one of the largest brewers in the Ukraine with an
annual production capacity of 2.9 million hectolitres. We also acquired the
Russian brewer LLC Vladpivo, in June 2008. Vladpivo, the largest brewer in the
Russian far-east Primorie region, is located near the city of Vladivostok and
has an annual capacity of 1 million hectolitres. The integration of Grolsch is
proceeding well, and we have recently acquired the US importation rights.
"On 30 June 2008 we announced the closing of the transaction with Molson Coors
Brewing Company to combine our US and Puerto Rico operations. MillerCoors, which
began operating as a combined entity on 1 July 2008, will have the scale,
resources and distribution platform to succeed in the highly competitive US
marketplace.
"On 17 July 2008 we completed a successful US$1.25 billion bond issue in two
tranches: US$550 million of 5.5-year notes with a coupon of 5.70%; and US$700
million of 10-year notes with a coupon of 6.50%. The net proceeds of the
offering will be used to repay certain existing indebtedness.
On 28 July 2008, we announced the establishment of a Euro Medium Term Note
Programme to allow us to further diversify our sources of funding in the future,
although no notes are being issued under the programme at this time."
Ends
Notes to editors:
SABMiller plc is one of the world`s largest brewers with brewing interests and
distribution agreements across six continents. The group`s wide portfolio of
brands includes premium international beers such as Grolsch, Miller Genuine
Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as market-leading
local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller
is also one of the largest bottlers of Coca-Cola products in the world.
In the year ended 31 March 2008, the group reported US$3,639 million in
adjusted pre-tax profit and revenue of US$21,410 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:
Tel:+44 20 7659 0100
SABMiller plc
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: 31/07/2008 12:13:01 Produced by the JSE SENS Department.
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