| Thu 15 Oct 2009, 8:00 | | SAB - SABMiller Plc - SABMiller Plc trading update |
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SAB - SABMiller Plc - SABMiller Plc trading update
SABMiller Plc
JSEALPHA CODE: SAB
ISSUER CODE: SOSAB
ISIN CODE: GB0004835483
15 October 2009
SABMiller plc Trading Update
SABMiller plc today provided an update regarding trading during the six-month
period ended 30 September 2009, which is the first half of its financial
year. The calculation of the organic growth rates below excludes the effects
of acquisitions and disposals.
Lager volumes for the first six months, on an organic basis, declined by 1%
compared to the prior year, reflecting difficult trading conditions across
many of our markets, while soft drinks volumes were 1% ahead. During the
period, group revenue was supported by price increases taken in the prior
year. Financial performance for the half year was in line with our
expectations.
In Latin America, lager volumes for the first half declined by 1%. Lager
volumes in Colombia were 2% below the prior year which benefited from
increased sales in September 2008 ahead of a 1 October price increase.
However, year to date volumes through to 13 October were approximately level
with the prior year. Against strong prior year comparative growth, lager
volumes in Peru declined by 2% although we gained significant market share in
a declining market as the effects of a weak economy were compounded by social
disruption and transportation strikes during the second quarter. Ecuador
continued to perform well with lager volumes growing 7% due to higher
consumer disposable income together with marketing and distribution
initiatives. Panama`s lager volumes were 2% above the prior year. In
Honduras, total volumes were level with the prior year.
Europe lager volumes were down 6% on an organic basis as adverse economic
conditions in the region continued to depress consumer spending. In Poland,
volumes were down 4% for the half year but we increased market share and
delivered marginal volume growth in the second quarter. In the Czech
Republic, domestic volumes declined 3%, with performance improving in the
second quarter, driven by higher levels of trade investment and growth in off-
premise share. The economic environment continued to deteriorate in Romania
and, despite improved market share, organic volumes for the half declined 12%
following strong prior year comparative growth of 24%. In Russia, weakening
consumer spending resulted in the beer market declining 6%, and our volumes
were down 12% on an organic basis as our portfolio was impacted by down
trading. In a weak market, volumes for the UK grew 15% on a like for like
basis.
In the six months ended 30 September 2009, MillerCoors U.S. domestic volume
sales to retailers ("STRs") were down 1.0% on a pro forma1 basis. For the
second quarter, MillerCoors STRs were down 1.3% against the prior year with
equal trading days in the period. ??Premium light brand volumes were down
low single digits in the quarter due to a mid single digit decline in Miller
Lite and a slight decline in Coors Light partially offset by continued strong
growth of MGD 64. The craft and import portfolio grew slightly during the
quarter, driven by high single digit growth of Blue Moon. The below premium
portfolio grew low single digits with double digit growth from Keystone Light
and continued growth in Miller High Life. ?Domestic sales to wholesalers
("STWs") were down 0.7% against the prior year for the second quarter. ???
1. MillerCoors pro forma figures are based on the comparable volumes for
Miller and Coors` US and Puerto Rico operations for the six months ended
September 2008.
Africa delivered lager volume growth of 3% on an organic basis. Soft drinks
sales in Africa grew 5% on an organic basis with good performances across the
region. Uganda continued its strong performance with lager volumes 18% ahead
of the prior year
supported by capacity commissioned during the second quarter, while lager
volumes in Zambia grew 23% assisted by the excise reduction in March 2009.
Mozambique lager volumes grew 7% reflecting increased distribution and
marketing initiatives. Our associate Castel continued to perform well,
particularly in Angola. Tanzania held market share although lager volumes
were 6% below the prior year as we cycled strong comparative growth and the
effects of a soft economy were compounded by drought in the north. Botswana
continued to be impacted by the 30% social levy on alcohol introduced in
November 2008 which, combined with an economic slowdown, drove lager volumes
down 47%.
Lager volumes in Asia increased by 9% on an organic basis. In China, CR Snow
continued to deliver strong performance with lager volumes growing 12% during
the first half and market share increasing further, although wet weather and
flooding in the Central and Southern regions slowed momentum in the second
quarter. Our lager volumes in India were 22% below the prior year due
largely to disputes over pricing and excise increases in some regions.
In South Africa, our lager volumes were 3% down and market share declined
marginally during the period, in a market that continued to be impacted by
reduced consumer spending and lower sales in the Western Cape, as a result of
the restrictions on the sale of alcoholic beverages. Soft drinks volumes
were down 2%, in line with the market.
Ends
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 2009, the group reported US$3,405 million adjusted
pre-tax profit and group revenue of US$25,302 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
Affairs Tel: +44 20 7659 0184
Gary Leibowitz Senior Vice President,
Investor Relations Tel: +44 20 7659 0174
Nigel Fairbrass 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: 15/10/2009 08:00:05 Produced by the JSE SENS Department.
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