| Thu 22 Jul 2010, 12:05 | | SAB - SABMiller plc - Trading Update |
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SAB
SOSAB
SAB - SABMiller plc - Trading Update
SABMiller plc
JSE ALPHA CODE: SAB
ISSUER CODE: SOSAB
ISIN CODE: GB004835483
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 2010, which constitutes SABMiller`s Interim
Management Statement for the same period. The calculation of the organic
growth rates below excludes the effects of acquisitions and disposals.
Mr Mackay said: "Both lager volumes and soft drinks volumes for the quarter
were 1% below the prior year on an organic basis. As anticipated at the start
of the year, consumer demand has remained uneven, with improvements seen in
some countries and weakness in others. Recent excise-related price increases
and, in the first two months, the timing of Easter, poor weather, and specific
events in Poland and Colombia held volumes back in a number of key markets.
However lager volume performance improved through the quarter on an organic
basis, showing growth in June compared to the prior year. Results benefited
from the impact of pricing despite increased excise-related taxes, and from
some reductions in raw material input costs. We continued to increase our
investment in brands and other market facing activities. Overall, the
financial performance of the group in the quarter was in line with our
expectations.
"In Latin America, lager volumes grew 1%. In Colombia lager volumes were
impacted by a price increase to recover the sales tax levied specifically on
the beer category. This, together with poor weather and five "dry days" around
presidential elections, resulted in a 6% decline in lager volumes. Peru`s
lager volumes were up 12%, boosted by the economic recovery and strong sales
execution, which increased our market share. In Ecuador robust growth
continued with lager volumes up by 9%, assisted by the launch of new pack
sizes and enhanced geographical distribution, and notwithstanding the
imposition in mid-June of Sunday restrictions on off-trade alcohol sales. Soft
drinks across the region were up 2% primarily due to a strong performance in
Peru.
"In Europe, lager volumes declined by 9%, as poor economic conditions
generally and recent significant excise increases in some markets continued to
depress demand. The first two months were particularly weak due to severe
flooding in many markets and temporary restrictions on the sale of alcohol in
Poland. However improved weather conditions assisted a return to volume growth
in June. In the quarter volumes in Poland were down 10%. Specific restrictions
on alcohol sales during a period of national mourning spanning nine days
following the death of the president and widespread flooding had a significant
impact. In Romania, volumes fell by 19% as the economic environment continued
to deteriorate. Our volumes in Russia declined 9% in line with the market
which continues to be impacted by the 200% excise increase effective 1 January
2010. Domestic volumes declined 8% in the Czech Republic, in line with the
market, in the context of continued weak consumer sentiment and excise-related
price increases.
"In the three months to 30 June 2010, MillerCoors` domestic sales to retailers
("STRs") were down 2.4% in a market that remained soft amid ongoing economic
pressures. Premium light brand volumes were down low single digits. Coors
Light volumes were flat, and MGD 64 was down low single digits, as was Miller
Lite which showed an improving trend since the last quarter. The crafts and
imports business performed well, led by a strong performance of Blue Moon and
Leinenkugel`s, and the segment delivered double digit growth. Below premium
brands saw a low single digit volume decline. Domestic sales to wholesalers
were down 3.5% in the quarter.
"In Africa lager volumes grew by 7% on an organic basis. In Mozambique lager
volumes were up 9% assisted by both the additional capacity from the new
Nampula brewery and the strong growth in our premium Laurentina Preta brand.
Capacity expansion in the prior year and economic growth in Uganda combined to
deliver lager volume growth of 26%. Reported Tanzania lager volumes declined
4% due to the termination of the arrangement with East Africa Breweries
Limited (EABL) to brew and distribute their products; however like-for-like
SABMiller brand volumes grew strongly over the prior year. In Angola the
recently commissioned brewery in Luanda enabled strong lager volume growth.
Botswana lager volumes continued to decline. Castel, our associate, grew
volumes by 7% on an organic basis with good performances in Ethiopia,
Cameroon, Ivory Coast and the Democratic Republic of Congo. In soft drinks
Angola returned to growth, although the category overall ended the quarter 3%
lower on an organic basis. Traditional beer volumes in the region grew 5%.
"Lager volumes in Asia grew by 4% on an organic basis. India reported
significant growth from a low prior year base which was affected by regulatory
issues in some key states. Volumes in China were broadly in line with the
prior year on an organic basis, cycling a strong comparative quarter last year
in which volumes grew 17%. Despite continued brand investment, the extended
winter, followed by severe storms, hampered volumes in CR Snow`s operations in
the central and western provinces early in the quarter. However volume growth
in China resumed in June.
"In South Africa, following a weak April due to the absence of an Easter peak,
lager volumes grew over the rest of the quarter, ending level with the prior
year in a market which grew marginally. Lager volumes benefited from continued
focus and investment in the core brand portfolio and the positive effect of
the 2010 FIFA World Cup. Periods of unusually cold and wet weather held back
soft drinks volumes which ended the quarter down 2%, despite increased
activations centred on the FIFA World Cup and emphasis on immediate
consumption packs.
"On 9 June 2010, we announced the issue of shares in the group`s South African
subsidiary, The South African Breweries Limited ("SAB") pursuant to the
group`s broad-based black economic empowerment transaction in South Africa,
which was announced on 1 July 2009 and approved by shareholders on 15 January
2010. A total of 46,173,000 new shares in SAB, representing 8.45% of SAB`s
enlarged issued share capital, has been issued to the three participant
groups: SAB employees; black-owned licensed liquor retailers and retail
liquor licence applicants, as well as registered black-owned customers of ABI,
the soft drinks division of SAB; and the broader South African community
through a newly established charitable SAB Foundation."
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 Pilsner Urquell, Peroni
Nastro Azzurro, Miller Genuine Draft and Grolsch, as well as leading local
brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller is
also one of the world`s largest bottlers of Coca-Cola products.
In the year ended 31 March 2010, the group reported US$3,803 million adjusted
pre-tax profit and group revenue of US$26,350 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/imagelibrary
Enquiries
SABMiller plc
t: +44 20 7659 0100
Sue Clark
Director Corporate Affairs
SABMiller plc
t: +44 20 7659 0184
Gary Leibowitz
Senior VP, Investor Relations
SABMiller plc
t: +44 20 7659 0174
Nigel Fairbrass
Head of Media Relations
SABMiller plc
t: +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: 22/07/2010 12:05:01 Produced by the JSE SENS Department.
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