| Tue 20 Apr 2010, 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
20 April 2010
SABMiller plc Trading Update
SABMiller plc today issues the following update on trading for the 12 months
to 31 March 2010. The calculation of the organic growth rates excludes the
effects of acquisitions and disposals.
On an organic basis lager volumes for the year were level with the prior
year, following growth of 2% in the fourth quarter. Full year soft drinks
volumes grew 2% on the same basis. Consumer demand has been hampered by
adverse global economic conditions throughout the year, although some of the
emerging markets in which we operate started to show signs of recovery
towards the end of the financial year. Volumes in the fourth quarter
benefited from this trend, as well as being assisted by a weak prior year
comparative base and, in some markets, the timing of Easter 2010. In the
second half of the year, we increased our investment behind key brands and
continued to invest in capacity in growth markets. As anticipated, during
the second half, the year on year beneficial effect of prior year price
increases and cost efficiencies gradually decreased but stronger operating
currencies will benefit our reported results. The Group`s financial
performance for the year remains in line with our expectations.
In Latin America, lager volumes grew 3% for the year following growth of 8%
in the final quarter assisted by the timing of Easter. Colombia`s lager
volumes grew 3% with growth of 13% in the fourth quarter supported by strong
market execution and a strengthening economy, notwithstanding a price
increase to recover higher sales taxes implemented in February 2010. Lager
volumes in Peru were in line with the prior year following growth of 3% in
the final quarter with continuing volume and value market share gains and
improving economic conditions. Enhanced sales initiatives and increased
outlet penetration continued to contribute to good growth in Ecuador with
lager volumes up 9% for the year. Strong soft drinks performance continued
across Central America, contributing to full year growth of 5% organically
for Latin America.
In Europe, full year lager volumes declined 5% on an organic basis. This
reflects the continued weak economic environment, as well as substantial
increases in excise taxes in a number of our markets. In Poland, we grew
market share in a declining market although volumes were down 3%. In
Romania, we took market share leadership during the year but organic volumes
were down 13%. Volumes in Russia declined 5% organically although we held
market share and, in the Czech Republic, domestic volumes declined 5% and
again we held share in a market that continues to be badly affected by the
decline in on-premise sales.
For the 12 months ended 31 March 2010, MillerCoors US domestic sales to
retailers (STRs) were down 2.3% on a pro forma (1) basis, with a 4.0%
decline in the quarter to March in a continued soft market. Premium light
STRs were down mid-single digits in the quarter due to declines in both
Miller Lite and Coors Light which were partially offset by the continued
growth of MGD 64. The below premium portfolio was down low-single digits
while Keystone Light delivered mid-single digit growth during the quarter.
The craft and import portfolio was up mid-single digits driven by the strong
performance of Blue Moon. The premium regular portfolio was down though
Coors Banquet grew slightly in the quarter. Domestic sales to wholesalers
(STWs) declined 2.3% on a pro forma basis for the year following a 3.6%
decline in the quarter to March 2010.
In Africa, continuing lager volume growth delivered a full year increase of
6% on an organic basis. Soft drinks volumes grew 4% organically for the
year. In Mozambique, lager volumes were up 11% supported by strong fourth
quarter growth reflecting improved availability in the North following the
commissioning of our new brewery in Nampula. Lager volumes in Uganda grew
24% for the year assisted by additional capacity and sustained economic
growth. Despite growth of 5% in the final quarter, volumes in Tanzania fell
4% for the year in line with the market, following unseasonable weather
earlier in the year. Botswana remains impacted by the social levy on alcohol
introduced in November 2008 with full year lager volumes down 35%. In
Angola, lager volumes were 5% above the prior year assisted by additional
capacity but hampered by production and logistical constraints. Castel
continued to perform well, delivering lager volume growth of 11% for the
year.
Lager volumes in Asia grew 5% organically for the quarter and 7% for the
year. Full year lager volume growth in China of 10% on an organic basis was
driven by market share gains with stronger growth in the first half.
Regulatory issues in India caused volumes to fall 14% with some loss of
market share, however conditions improved in the fourth quarter.
In South Africa, lager volumes were down 1% for the year in a market that
grew slightly, but we delivered growth of 8% in the fourth quarter.
Consumer spending remained subdued, but our lager sales during the quarter
benefited from increased investment behind our core brands, strong trade
execution and the favourable timing of Easter 2010. Soft drinks volumes
declined 2% with growth of 4% in the final quarter assisted by the earlier
Easter.
Ends
(1) MillerCoors pro forma figures are based on the comparable volumes for
Miller and Coors` US and Puerto Rico operations for the year ended 31 March
2009.
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: 20/04/2010 08:00:01 Produced by the JSE SENS Department.
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