| Tue 14 Oct 2008, 8:00 | | SAB - SABMiller Plc - Trading update |
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SAB
SOSAB
SAB - SABMiller Plc - Trading update
SABMiller Plc
JSEALPHA CODE: SAB
ISSUER CODE: SOSAB
ISIN CODE: GB0004835483
14 October 2008
SABMiller plc Trading Update
SABMiller plc today provided an update regarding trading during the six-month
period ended 30 September 2008, which is the first half of its financial year.
Volume growth is shown using the group`s new definition which aligns the basis
of reported volume growth with that of group revenue and EBITA. Further
details regarding the new definition can be found at the end of the statement.
The calculation of the organic growth rates included below excludes volumes
for acquired businesses for the first 12 months after an acquisition.
The group recorded 3% growth in lager volumes with organic lager volumes
marginally ahead of the prior year (up 1% in the second quarter). This
reflects a high comparable (organic lager growth of 9%) and moderating
consumer demand in many markets. Group revenue growth has been assisted by
firm pricing, with revenue per hl at constant exchange rates growing in excess
of 5%, and this has continued to offset the impact of higher input costs.
Financial performance for the six months was in line with the group`s
expectations, benefiting from generally favourable exchange rates when
compared with the prior year, whilst on an underlying basis slower volumes
have constrained profit growth. Deteriorating global economic conditions,
weakening consumer demand and volatile exchange rates make the prospects for
the rest of the financial year increasingly uncertain.
In Latin America, lager volumes grew by 3%. Lager volumes in Colombia were 3%
below the prior year, showing some improvement in the trend recently, although
high consumer lending rates have continued to inhibit consumer demand. In
Peru, lager volumes were 10% ahead of the prior year, reflecting a robust
trading environment and strong local execution. Our business in Ecuador
continued to deliver strong performance with 14% lager volume growth, as the
market continued to respond to the reinvigoration of the brand portfolio and
route to market.
In Europe lager volume growth on an organic basis was 2%, following strong
growth in the prior year (12%). Poland achieved organic domestic volume growth
of 4% and continued to increase market share. Romania volumes also
outperformed the market, growing 24%, driven by the Timisoreana and Ursus
brands. Organic volumes in Russia were 4% down, impacted by the effect of
sustained high inflation on consumer demand and de-stocking of wholesale
inventories towards the end of the period. Czech Republic domestic volumes
declined by 5%, but the trend has improved in recent months in response to
trade and marketing initiatives.
As previously reported, in the first quarter of our financial year Miller`s
Brewing Company`s US domestic volume sales to retailers ("STRs") decreased by
2.0% compared to the prior year. The Miller Brewing Company and the Coors
Brewing Company combined their US and Puerto Rico operations with effect from
1 July 2008 to form MillerCoors. In the three months to 30 September,
MillerCoors` domestic US volume STRs grew by 0.7% on a trading day adjusted
basis when compared to pro forma combined STRs in the comparable period of the
prior year. Coors Light brand volumes increased 6.8%, whilst Miller Lite
decreased 3.6%. The craft and import portfolio volumes rose 5.0%, Keystone
Light posted double digit gains and both Coors Banquet and Miller High Life
continued to generate good growth. Miller Chill volumes declined significantly
with aggressive competition in the segment.
In our Africa and Asia business, organic lager volumes increased 2%. China
organic volumes were flat, although growth of 4% was achieved in the second
quarter despite the continued impact of significant beer industry price
increases. In Africa, lager volumes grew by 11% on an organic basis, following
good growth in the prior year (8%), with strong growth across the region,
particularly in Tanzania.
In South Africa, our lager volumes were 1% below the prior year with sales
stronger in the second quarter. Soft drink volumes grew 2%. The market overall
continued to be affected by softer consumer demand. As previously reported,
ongoing cost inflation and currency weakness have impacted financial
performance.
Ends
Notes to editors:
About SABMiller plc
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.
Change to volume definition
The MillerCoors joint venture came into effect on 1 July 2008. SABMiller has a
58% economic interest in the venture although SABMiller plc and Molson Coors
Brewing Company jointly control the entity. Both parties have contributed
their respective US and Puerto Rico businesses to the joint venture.
Following this transaction, the group has changed its definition of sales
volumes, as set out below, to ensure a close alignment between the basis of
its reported growth in volume with that of group revenue and EBITA:
In the determination and disclosure of sales volumes, the group includes 100%
of the volumes of all consolidated subsidiaries and the equity accounted
percentages of its associates` and joint ventures` volumes. Contract brewing
and intra-group volumes are excluded from sales volumes.
As a result only the group`s equity-accounted percentages of its associates`
and joint ventures` volumes will be included (i.e. 58% of MillerCoors`
volumes, 49% of CR Snow volumes etc).
The impact of the change in definition on the group`s organic volume growth
reported for the first half of the current and previous financial years is as
follows:
Organic volume growth 2009 2009 2008 2008
for first half of the
financial year
New Old New Old
definition definition definition definition
Lager 0% 0% 9% 11%
Certain organic volume growth rate data, compiled under both the new and old
volume definition, for the last five financial years by geographic segment is
now available on the company`s website www.sabmiller.com.
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
SABMiller plc 0100
Sue Clark Director of Corporate Tel: +44 20 7659
Affairs 0184
Gary Leibowitz Senior Vice President, Tel: +44 20 7659
Investor Relations 0119
Jonathan Oates Business Relations Media Tel: +44 20 7659
Manager 0144
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: 14/10/2008 08:00:04 Produced by the JSE SENS Department.
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