E-Malt.com News article: 3027

UK, London: Top brands like Miller Lite helped boost first-quarter trading at SABMiller, the world's second-largest brewer said on July 29, with all units contributing to a "pleasing" increase in earnings per share. The London-based maker of beers including Miller, Castle, Holsten, Peroni, Nastro Azzurro and Pilsner Urquell, said in its trading statement for the annual shareholders meeting that the new financial year had started well across the group, according to Reuters.

"The group has achieved a good start to the financial year, with the performance for the first quarter ... being in line with our expectations," Chief Executive Graham Mackay said. "All of our businesses have contributed towards a pleasing increase in adjusted earnings per share for the period," he added, but did not specify a figure.

SABMiller, known as South African Breweries before it bought Miller from Altria in 2002, said domestic sales of the U.S. Miller unit had risen 2.8 percent over the year-ago quarter, led by its top brand Miller Lite which has grown sales volumes since early July 2003.

Miller Lite accounts for two-thirds of Miller profits, and has been boosted by the popularity of low-carbohydrate diets like Atkins -- as have rivals like Anheuser-Busch's Michelob Ultra and Adolph Coors Co's Aspen Edge.

While a weak economy and intensifying competition cut Central American beer sales volumes by 2 percent, Europe saw a 3 percent organic growth, with volume growth in Poland, Russia and Romania offset by falls elsewhere in Europe resulting from the poor early summer weather. But volumes in the Africa & Asia region leapt 10 percent, driven by improving trading conditions in China, Mackay said.

South African volumes rose four percent on the same 2003 quarter, and good local-currency performance was enhanced in dollar terms by the stronger rand. In May SABMiller reported a 49 percent rise in year core profits of $1.89 billion on rejuvenated sales for the Miller and Miller Lite brands. "It's good, the Miller volume is holding up pretty well against some fairly difficult comps," said one London-based analyst, requesting anonymity.

"South African volume growth of four percent is good news for the margin with the stronger rand. The stock is being reappraised, but this is not necessarily enough to get people really excited," he said.

Shares in SABMiller, which have outperformed the DJStoxx Food & Beverages index by 21 percent this year, were trading 0.2 percent higher at 703 pence in London by 1125 GMT. The company is trading at 14.44 times estimated current year earnings, closely in line with the sector average.

The company, which earlier this year lost out to Anheuser in a bid battle for Hong Kong's Harbin Brewery Group, said recently it was considering offering 78 rand per share to buy out minority shareholders in soft drinks subsidiary Amalgamated Beverage Industries (ABI). SAB Miller already holds 73.5 percent of ABI.


31 July, 2004