| Tue 19 Jan 2010, 9:00 | | 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
19 January 2010
SABMiller plc Trading Update
SABMiller plc today issues its interim management statement for the group`s
third quarter ended 31 December 2009 which also represents a trading update for
the same period. The calculation of the organic growth rates excludes the
effects of acquisitions and disposals.
On an organic basis lager volumes for the third quarter were level with the
prior year, and 1% below last year for the first nine months of the financial
year. Soft drinks volumes grew 2% in the quarter on an organic basis. Consumer
demand during the quarter varied across our markets, with some showing tentative
signs of recovery, whilst in others demand remained subdued. The financial
performance of the group in the quarter was in line with our expectations.
In Latin America, lager volumes grew by 4% in the quarter. Lager volumes in
Colombia grew 6% benefiting from good weather, an increase in consumer
disposable income and strong operational execution. The quarter also benefited
from a soft October in the prior year which was impacted by a price increase.
In Peru, lager volumes were up 1%, notwithstanding growth of 14% in the same
quarter last year, with strong sales execution driving further market share
gains. Good growth continued in Ecuador with lager volumes up 9% reflecting the
success of sales initiatives and wider retail outlet penetration. Soft drinks
volumes were up 9% in the region on an organic basis due to a strong sales
performance in Central America.
In Europe, third quarter lager volumes declined 2% on an organic basis. Organic
volumes in Russia grew 34%, reflecting significant buy-in ahead of a substantial
excise increase in January and the impact of de-stocking of wholesaler
inventories in the prior year. Poland`s volumes were down 5% in a declining
market, although we continued to improve our market share. In Romania, lager
volumes declined 18% on an organic basis, against a strong prior year growth
comparative of 11%, but we increased market share. In the Czech Republic,
domestic volumes declined by 5%, notwithstanding some buy-in ahead of an excise
increase in January, as we continued to be negatively impacted by our exposure
to the on-premise channel which has suffered during the economic downturn.
MillerCoors domestic sales to retailers were down 3.6% against the prior year in
the quarter, amidst a challenging industry and economic environment. Premium
light brand volumes fell mid single-digits due to a decline in Miller Lite and
to a lesser extent in Coors Light, which were partly offset by continued strong
growth of MGD 64. The craft and import portfolio was down slightly in the
quarter though Blue Moon and Peroni Nastro Azzurro delivered high single and mid
single-digit growth, respectively. The below premium portfolio was also down
slightly while Keystone Light achieved high single-digit growth in the quarter.
Domestic sales to wholesalers declined 4.2% in the same period.
In Africa, lager volumes rose 7% on an organic basis. Soft drink volumes
performed well across the region growing 7% on the same basis. In Zambia, lager
volumes were up 17%, assisted by an excise reduction in March 2009 and lager
volume growth in Uganda was strong as we continued to benefit from additional
capacity. Mozambique`s lager volumes grew 11% aided by a resilient economy and
strong growth in the northern region supported by the commissioning of our new
brewery in Nampula. Lager volumes in Angola grew 17% assisted by additional
capacity. Our associate, Castel, enjoyed a robust performance across the region
with lager volumes up 13%. Lager volumes in Botswana were down 29%, with some
reduction in the rate of decline as the social levy imposed in November 2008 was
cycled, although sales continued to be hampered by a weak economy. Despite
holding market share, volumes in Tanzania declined 8% impacted by unseasonal
weather and a soft economy.
Lager volumes in Asia grew 5% on an organic basis. Organic volume growth in
China slowed to 6% with heavy snow and wet weather suppressing demand across the
country. Our volumes in India were down 7% following excise increases and a
continuation of regulatory impediments.
In South Africa, our lager volumes declined 4% in the quarter as the country
continued to experience a softening of consumer demand. Market share declined
marginally over the quarter. Soft drinks volumes were down 5%, impacted by a
weak economy and unseasonal cold weather at the start of the quarter.
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 Tel: +44 20 7659 0184
Affairs
Gary Leibowitz Senior Vice President, Tel: +44 20 7659 0174
Investor Relations
Nigel Fairbrass Media Relations Tel: +44 7799894265
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: 19/01/2010 09:00:01 Produced by the JSE SENS Department.
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