E-Malt.com News article: 3318

UK: SABMiller plc, the world's second-largest brewer, announced on September 22, 2004 its performance had been strong in the five months to end-August and it had enjoyed earnings growth across all its businesses. Prior to the announcement of its interim results due in November and ahead of the Miller investor presentations on September 27 and 28, SABMiller plc has provided an update to the trading statement made at the Company’s AGM on 29 July 2004. Group financial performance in the five-month period to 31 August 2004 was strong, and earnings growth was recorded in all of our businesses. For the same period, the group’s organic lager volume growth was over 4%, said the company.

In North America, Miller’s US domestic sales to retailers (STRs) increased by 2% for the period to mid September, with growth in the Miller Lite franchise being partially offset by reductions in other brands. Financial performance has benefited from favourable brand mix and price increases.

While beer volumes in Central America remain largely unchanged, volumes of carbonated soft drinks (CSD) were some 5% below prior year, reflecting continuing price-based competition in the market. The business continues to benefit from previous cost rationalisation activities and selective price increases in both beer and CSDs.

Company’s Europe business produced satisfactory results, with organic lager growth of 3%. In addition to continued volume growth in Russia and Romania, the second quarter’s volume trends in the key markets of Poland and Czech are better than in the first quarter, partially offset by weakness in Italy and Hungary.

The Africa and Asia business delivered a pleasing increase in organic lager volume of 9% over the prior year, reflecting growth in China against a comparable period impacted by SARS, and growth in key African markets.

In South Africa, beer volumes have grown by some 4%, with further gains in share of the total liquor market. At ABI, CSD volumes were up by 7% over the prior year. Strong operating performances have been enhanced by favourable currency movements.

SABMiller plc is one of the world’s largest brewers, with 2003/04 lager volumes in excess of 137 million hectolitres. It has a brewing presence in over 40 countries across four continents and a portfolio of strong brands and leading market shares in many of the countries in which it has brewing operations. Outside the USA, SABMiller plc is one of the largest bottlers of Coca-Cola products in the world.

In the year ended 31 March 2004, the group generated US$1,391 million pre-tax profit from a turnover of US$12,645 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.


25 September, 2004