| Wed 17 Jan 2007, 9:00 | | SAB - SABMiller plc - Trading Update |
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SAB
SOSAB
SAB - SABMiller plc - Trading Update
JSEALPHA CODE: SAB
ISSUER CODE: SOSAB
ISIN CODE: GB0004835483
17 January 2007
SABMiller plc Trading Update
Following the summer peak season in its southern hemisphere operations,
SABMiller plc today issues its trading update for the group`s third quarter
and for the nine months ended 31 December 2006. The calculation of the
group`s organic growth rates includes volumes for Bavaria SA from 12 October
2006, 12 months after it became part of the group.
The group`s organic lager volume growth for the third quarter was some 10%,
marginally ahead of growth for the year to date of 9.5%.
South Africa Beverages achieved an increase in lager volumes of almost 1%
during the quarter, in line with year to date volume growth. Lager volumes
were constrained by stock shortages resulting from temporary disruptions to
both raw material and glass supplies, in addition to disruptions in the
national rail transport network. Underlying economic performance and
consumer confidence in South Africa remain positive, contributing to
continuing mix improvements, albeit at a moderating pace. Soft drinks
volumes declined by 3% in the quarter reflecting the national shortage of
carbon dioxide, and year to date soft drink volumes are now slightly down on
the prior year.
On a pro forma basis, South America lager volumes for the three months to 31
December 2006 were some 12% above the prior year and up 11% year to date.
This performance reflects continuing growth across the region with robust
growth in Peru, where market conditions remain competitive. In Colombia, the
launch of Peroni Nastro Azzurro and the relaunch of Club Colombia have been
successful and the regional volume performance also reflects a range of
initiatives including the packaging changes to Cristal in Peru. In Central
America, carbonated soft drink volumes (CSDs) were up 6% for the quarter and
year to date, with growth being achieved in both countries, whilst lager
volumes were 9% higher in the quarter, with year to date growth of 7%.
In Europe, lager volume grew some 13% during the quarter on an organic
basis, with year to date growth of over 9%. This has been driven by
continuing good performances from Poland, Russia and Romania, influenced by
an exceptionally mild winter. Worthmore volumes grew by 13% in the quarter,
consistent with year to date growth.
Miller`s third quarter domestic sales to retailers (STRs) were 4.3% above
the prior year and 0.9% below prior year on an organic basis excluding
Sparks and Steel Reserve. Following management initiatives, STRs of flagship
brand Miller Lite have grown by 1.5% in the quarter. STR performance for
Miller, and particularly Miller Lite, was stronger in December. Miller`s
shipments to wholesalers for the quarter grew less than STRs as distributor
inventories reduced. For the year to date, Miller`s organic domestic STRs
declined 2.8% after adjusting for the number of trading days in the period
(3.3% unadjusted). Whilst Miller`s December STR performance has been
encouraging, supported by increased marketing and sales programmes, price
recovery and raw material costs were more adverse in the quarter than
expected.
Our Africa and Asia business delivered organic growth of 30% in lager
volumes in the quarter and 25% year to date, reflecting particularly strong
growth in China of over 30% in the quarter. In Africa (excluding Zimbabwe)
lager volumes grew by 10% in the quarter and 7% year to date, with volumes
in Tanzania advancing 10% in the quarter. Strong gains were also achieved
in Mozambique and Uganda, whilst a marginal decline in lager volume was
recorded in Botswana in the quarter. CSD growth (excluding Zimbabwe) was 17%
in the quarter and 21% year to date, which was led by continuing strong
growth in Angola.
The group`s financial performance has been in line with our expectations
outlined at the time of the interim results announcement, despite the
headwinds experienced at Miller and in South Africa, and the comparatively
weaker South African rand/US dollar exchange rate prevailing in the quarter.
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 six 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 207659 0100
Sue Clark Director of Corporate Tel: +44 207659 0184
Affairs
Gary Leibowitz Senior Vice President, Tel: +44 207659 0174
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: 17/01/2007 09:00:02 Produced by the JSE SENS Department.
