| Wed 19 Oct 2011, 8:01 | | SAB - SAB Miller plc - Trading Update |
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SAB
SOSAB
SAB - SAB Miller plc - Trading Update
JSE ALPHA CODE: SAB
ISSUER CODE: SOSAB
ISIN CODE: GB0004835483
SABMiller plc Trading Update
SABMiller plc today provides an update on trading during the six-months ended
30 September 2011. The calculation of the growth rates in this update
excludes the effects of acquisitions and disposals on volumes and revenues,
unless otherwise stated.
Lager volumes for the first six months were 3% ahead of the prior year. Beer
consumption continued to vary across markets with further healthy growth in
Latin America and Africa and underlying weakness persisting in North America
and Europe. Growth slowed in the second quarter, in part reflecting stronger
prior year comparatives, and some particularly poor weather in Europe and
China in the current period. Soft drinks volumes grew by 6% for the half
year. Volume growth combined with selective price increases and mix benefits
increased group revenue by 6% and group revenue per hectolitre by 3% in
constant currency. Raw material costs rose moderately and investment in the
group`s brands and market facing capabilities was increased, which together
with higher central costs constrained margins. Overall, financial performance
for the half year was in line with our expectations.
In Latin America, lager volumes grew 8%. Colombia`s lager volumes increased
by 7% benefiting from improved trade execution and our strategy of price
restraint, the cycling of the February 2010 VAT increase and the impact of
extreme weather conditions in the prior period. In Peru lager volumes grew by
11%, underpinned by gains in beer market share, in part reflecting the
successful repositioning of Pilsen Callao in the upper mainstream segment, and
assisted by a buoyant economy. Ecuador`s lager volumes increased by 5%, with
growth of 11% in the second quarter, following the roll-out of the direct
service model into rural areas and the cycling of Sunday trade restrictions
introduced in June 2010. Double digit lager volume growth was achieved in
both Honduras and El Salvador as a result of national introductions of bulk
packs. Soft drinks volumes in Latin America ended the first half 12% ahead of
the prior year driven by stronger distribution of non-alcoholic malt drinks in
Colombia and the recent launch of a non-alcoholic refreshing malt variant,
Maltizz, and strong performance across our Central American markets.
Lager volumes in Europe were level with the prior year. Beer markets were
affected by the continuing fragile economic environment which further reduced
consumer confidence and expenditure during the period. Poland`s volumes were
down by 2%, impacted by weak consumer spending and continued significant
competitor price reductions. Phasing within the half year was affected by a
low base in the first quarter of the prior year and heavy rains in the second
quarter of the current year. In the Czech Republic, domestic volumes declined
by 1% in the half year, significantly impacted by heavy rain and cold weather
in July tempered by continued good performance of brand and pack innovations
in the convenience segment. Volumes were up by 3% in Russia with growth in
the first quarter, compared with a weak comparative period, partly offset by a
decline in the second quarter reflecting an exceptionally hot summer in the
prior year. In Romania, a difficult economic environment and government
austerity measures continued to impact consumer demand which, combined with
intensified competition in pricing and marketing, drove volumes down by 8%.
Volume performance for Europe as a whole benefited from significant growth in
Ukraine as well as continued positive performance in the United Kingdom.
In the six months ended 30 September 2011, MillerCoors domestic sales to
retailers (STRs) were down by 2.3% in a market which continued to be impacted
by high unemployment and subdued consumer spending. In the second quarter,
MillerCoors STRs were down 2.0% against the prior period. Premium light
volumes were down by low single digits in the quarter, with a mid single digit
decline for Miller Lite being partially offset by growth in Coors Light. The
Tenth and Blake crafts and imports division drove double digit growth, led by
the continuing strength of Blue Moon and Leinenkugel`s. Below premium volumes
were down mid single-digits. ? Domestic sales to wholesalers (STWs) for the
second quarter were down by 4.7% against the comparative period and for the
half year were down 3.9%. The STW decline in the first half was higher than
the STR decline due to the timing of shipments in the prior year.
In Africa lager volumes for the six months grew by 15% with strong growth
across the region. Robust lager volume growth of 20% was delivered in
Tanzania aided by strong growth of the local brand portfolio. In Uganda,
volumes grew by 23% driven by increased penetration in the west of the country
and enhanced outlet branding and sales execution. Zambia volumes ended 22%
ahead of the prior year assisted by favourable economic conditions and a
strong performance by the Castle brands. Lager volumes in Mozambique grew by
11% driven by healthy growth of the mainstream portfolio. In Ghana, strong
economic conditions and improved availability resulted in lager volume growth
of 54%. Zimbabwe`s lager volumes continued to benefit from capacity upgrades
in the prior year and grew by 30%. Our associate Castel delivered 11% lager
volume growth with good performance in the Democratic Republic of Congo and
Cameroon. Soft drinks volumes grew by 10% with robust performances in Ghana
and Zimbabwe.
Asia`s lager volumes were up by 4% for the first half, but with the benefits
of regional acquisitions in China were up by 9%, in absolute terms. In China,
lager volumes grew 5%, with double digit first quarter growth followed by a
slight decline in the second quarter as a result of prolonged heavy rains in
the Central region which limited consumer demand. The second quarter cycled
strong growth in the comparative quarter last year in which volumes grew by
16%. In India, volumes declined by 7% with robust growth in September,
following the lifting of trading restrictions in Andhra Pradesh, partially
offsetting the impact of excise increases implemented across a number of key
states at the beginning of the half year.
In South Africa, lager volumes were level in the first half year compared with
the prior period in a market that declined slightly. Although volumes
benefited from an Easter peak in the first quarter, performance was impacted
by weaker consumer demand and a higher base in the prior period reflecting the
impact of the 2010 FIFA World Cup. The portfolio continued to benefit from
targeted investments in its core power brands as well as continuing
improvements in retail execution and customer service. Castle Lite remained
the top performer, growing strongly, while Castle Lager also made good gains,
and the successful repositioning of Castle Milk Stout translated into solid
growth. Soft drinks volumes declined by 3% during the first half year,
cycling strong growth in the second quarter of the prior year. Volumes in the
period were adversely affected by colder and wetter weather and consequent
subdued consumer demand.
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
includes global brands 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 2011, the group reported US$4,491 million adjusted
pre-tax profit and group revenue of US$28,311 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
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 announcement 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: 19/10/2011 08:01:16 Produced by the JSE SENS Department.
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