| Mon 18 Oct 2010, 8:01 | | SAB - SABMiller Plc - SABMiller plc Trading update |
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SAB - SABMiller Plc - SABMiller plc Trading update
SABMiller Plc
JSEALPHA CODE: SAB
ISIN CODE: SOSAB
ISIN CODE: GB0004835483
SABMiller plc Trading Update
SABMiller plc today provided an update regarding trading during the six-month
period ended 30 September 2010, which is the first half of its financial year.
The calculation of the organic growth rates below excludes the effects of
acquisitions and disposals on volumes.
Lager volumes for the first six months, on an organic basis, grew by 1%
compared to the prior year, with volume performance remaining mixed across key
countries. Soft drinks volumes were 2% ahead of the prior year on an organic
basis. Results benefited from this volume growth, prior year net price
increases and some raw material cost reductions, while we continued to invest
in marketing. The strengthening of key operating currencies against the US
dollar also assisted results for the half year. Overall, financial performance
for the half year was in line with our expectations.
Latin America`s lager volumes were marginally down on the prior year.
Colombia`s lager volumes continued to be depressed by the February 2010 price
increase taken to recover the emergency sales tax levied specifically on the
beer category. This, combined with poor weather and five `dry days` around
elections earlier in the half year, resulted in a 7% decline in lager volumes.
Peru`s lager volume growth of 11% was driven by effective sales execution and
promotions in a strong economy. Ecuador grew lager volumes by 4%, with the
impact of new pack sizes and wider distribution partly offset by restrictions
on off-trade alcohol sales implemented at the end of the first quarter. Soft
drinks volumes were down 2% across our Central America markets which were
impacted by poor weather and a difficult economic environment.
Lager volumes in Europe were down 5%. After a particularly challenging first
quarter, favourable weather conditions helped boost sales volumes in the
second quarter. However, the industry continued to be affected by weak
economic conditions across the region. In Poland, in addition to the specific
events commented on in the July Trading Update which adversely affected
volumes in the first quarter, significant competitor activity in the economy
segment led to downtrading. As a result our volumes were down 6%. In the Czech
Republic, the industry continued to be impacted by weakness in the on-premise
sector, downtrading and excise increases with our volumes down 9%. In Russia,
volumes declined by 1% in the first half although there was growth in the
second quarter, aided by exceptionally warm weather in July and August. In
Romania, volumes fell by 11% as the beer market continued to suffer from the
effects of a fragile economic environment, exacerbated by a VAT increase in
July 2010 and other government austerity measures.
In the six months to 30 September 2010, MillerCoors` domestic sales to
retailers (`STRs`) were down 3.2% in a market which continued to be impacted
by economic uncertainty and high levels of unemployment. For the second
quarter, MillerCoors` STRs were down 4.0% against the prior year. Premium
light volumes in the quarter across key brands were down low single digits
while below premiums were down mid single digits. The Tenth and Blake crafts
and imports division saw double digit growth, with particularly strong
performance from Blue Moon and Leinenkugel`s. Domestic sales to wholesalers
(`STWs`) for the second quarter were down 2.7% against the prior year and for
the half year were down 3.1%.
In Africa lager volumes for the six months grew 11% on an organic basis.
Following the stabilisation of the economy in Zimbabwe after the effective
adoption of the US dollar as its currency, we have included our share of
Zimbabwe`s volumes and results for the first half of this year. Excluding
Zimbabwe, lager volume growth in Africa would have been 7% for the period, on
an organic basis. Volumes in Uganda continued to benefit from increased
capacity and were 23% ahead with strong momentum from an expanded portfolio of
brands. In Zambia volumes grew by 15% benefiting from an excise reduction at
the start of the financial year. Lager volumes in Tanzania were level with the
prior year, with good growth of SABMiller brands, particularly in the local
premium segment. Mozambique delivered 10% lager volume growth assisted by
additional capacity installed in the north of the country last year, together
with strong local premium brand performance. In Angola, the new Luanda brewery
capacity enabled strong lager volume growth. Botswana volumes continued to
decline. Our associate Castel delivered 4% lager volume growth. Soft drinks
volumes ended the half year 5% ahead (1% growth excluding Zimbabwe), with
Angola soft drinks volumes level with the prior year.
Lager volumes in Asia grew by 10% on an organic basis during the first half of
the year. Lager volumes in China were 9% ahead on an organic basis. While poor
weather depressed growth in the first quarter, volumes grew by 16% in the
second quarter, with particularly strong performance in the North-East and
Central regions. Volume growth continued to be supported by investment in both
sales and marketing activities. In India volumes grew significantly in the
first quarter, but were subsequently held back by further regulatory
constraints.
In South Africa lager volumes were up 3% during the first half in a growing
market. Volumes benefited from strong brand building and enhanced retail
execution. The lack of an Easter peak was partially offset by the positive
impact of the 2010 FIFA World Cup. The cold and wet weather experienced at the
beginning of the year gave way to warm and dry conditions in the second
quarter, which together with the continued focus on our soft drinks growth
strategy, led to volume growth of 3% in soft drinks for the half year.
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
Broadcast footage is available in internet or SD/HD quality for download free
of charge from www.sabmiller.com/broadcastfootage
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
18 October 2010
Date: 18/10/2010 08:01:00 Produced by the JSE SENS Department.
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