| Thu 12 Oct 2006, 8:00 | | SABMiller plc - Trading Update |
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SAB
SOSAB
SABMiller plc - Trading Update
SABMiller plc
JSEALPHA CODE: SAB
ISSUER CODE: SOSAB
ISIN CODE: GB0004835483
Ref 48/2006
12 October 2006
SABMiller plc Trading Update
SABMiller plc today provided an update regarding trading during the six-
month period to 30 September 2006, which is the first half of its current
financial year. The calculation of the group"s organic growth rate
excludes volumes for South America which became part of the group in
October 2005.
"The group"s lager sales volumes grew by some 9% on an organic basis in
the period, whilst financial performance was in line with management"s
expectations.
In South America, favourable trading conditions continued with all
countries delivering strong performances, resulting in 11% growth overall
in lager volumes for the first half, on a pro forma basis. In Peru,
competitor activity at lower prices has stimulated sales volumes. Our
integration activities in the region are proceeding well, and we have
commenced a period of increased investment in the market place as
evidenced by the recent launches in the premium segment of Peroni Nastro
Azzurro in Colombia and Barena in Peru. In Central America, both beer and
soft drink volumes were up by some 6%, reflecting an improvement in
trading conditions.
Europe continued to perform well with organic growth in lager volumes of
8%, assisted by additional consumption during the World Cup. Poland
continued to achieve strong growth notwithstanding challenging
comparatives, driven by our principal Polish brands, Tyskie and Zubr,
which are the top two brands in the market. Russia recorded volume
growth of over 20%, reflecting double digit gains for Zolotaya Bochka,
Kozel, Miller Genuine Draft and Redds. Romania also reported double
digit growth, driven by our Timisoreana brand. Both the Czech Republic
and Italy achieved marginal growth in volumes. Our new UK business
maintained its good momentum, and during the period Peroni Nastro Azzurro
volumes increased by over 25%.
In North America, Miller"s US domestic sales to retailers (STRs) were
down by 3.6% on an organic, comparable trading day basis. Volumes
continued to be affected by the 2005 competitive price reductions and
market share gains by the import and craft beer segments. Miller Lite
brand volumes declined marginally on an adjusted basis, whilst Miller"s
key economy brand volumes declined by mid-single digit levels. In the
worthmore sector, Miller achieved encouraging volume growth resulting
from innovation in the Leinenkugel"s range and expanded distribution for
our newly launched Peroni Nastro Azzurro brand.
Our Africa and Asia business delivered organic growth of over 20% in
lager volumes. China recorded organic growth in excess of 25%, with all
regions contributing to this good performance. During this six month
period, CRSnow became China"s largest brewer and its national brand Snow,
the country"s largest beer brand, achieved strong growth. In Africa
(excluding Zimbabwe) lager volumes grew by 6%, with volumes in Tanzania
advancing in mid-single digits. Strong gains were achieved in Mozambique
and Uganda, outweighing the volume decline in Botswana resulting from the
prior years" local currency devaluations.
In South Africa, lager volumes were ahead by almost 1% following strong
growth in the prior year. Sales mix improved as a result of good growth
in our portfolio of premium brands. Soft drink volumes increased by some
1%, following growth of 10% in the comparable prior year period during
which weather conditions were particularly favourable."
Ends
Notes to editors:
SABMiller plc is one of the world"s largest brewers with brewing
interests or distribution agreements in over 60 countries across five
continents. The group"s brands include premium international beers such
as Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as
well as an exceptional range of market leading local brands. Outside the
USA, SABMiller plc is also one of the largest bottlers of Coca-Cola
products in the world.
In the year ended 31 March 2006, the group reported US$15,307 million in
revenue and profit before tax of $2,453 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.vismedia.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 0119
Investor Relations
Nigel Fairbrass Head of Media Relations Tel: +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: 12/10/2006 08:00:11 AM Produced by the JSE SENS Department
