SABMiller Plc, the world's second largest brewer, is set to report a profit jump next week boosted by its $5.6 billion Miller acquisition, but analysts remain concerned over when it will turn around the U.S. brewer, Reuters reported in a statement. In the six months since the London-based group bought Miller last July, beer volumes have slipped and it faces a tough turnaround battle against industry giant Anheuser-Busch. Many analysts also wonder if SABMiller SABJ.J overpaid in its recent deal to buy a 60 percent stake in Italy's Peroni, which could see it pay up to almost 630 million euros over five years for full control.

The maker of Pilsner Urquell, Miller Lite and Castle beers is expected to report pre-tax profits of $817-851 million for the year to end-March, boosted by a nine-month contribution from Miller, compared to a previous $614 million, when it reports on May 22.

European brewing consolidation has picked up pace with Heineken NV paying 1.9 billion euros for Austria's BBAG this month, at a multiple of 10.8 times core EBITDA earnings, but SABMiller came in with an even higher multiple of 12.6 times for Peroni.

17 May, 2003