E-Malt.com News article: 1110

UK- and SA-listed SABMiller plc (SAB), the world's second largest brewer by volume, has reported an 11% rise in US dollar terms in its adjusted earnings per share (EPS) for the financial year to end-March 2003, up 9% in rand terms.

Announcing its final results on Thursday, SABMiller reported adjusted EPS of 54 US cents, up from 48.7 cents a year earlier, and a dividend of 25 US cents, unchanged from previously. The group said turnover, excluding its acquisition of Miller Brewing Co., rose 29% to US$5.64 billion from $4.36 billion a year earlier, while including Miller (for nine months out of the year) it jumped 109% to $9.11 billion. Total beverage volumes were up 52% to 151.4 million hectoliters (hls), resulting in organic growth of 3%.

Chairman Meyer Kahn said the growth had been underpinned by "outstanding" growth in the group's businesses in South Africa, Europe, Africa and Asia, as well as strong operational performances and favorable currency moves.

EBITDA margins had continued to improve in most of its businesses, the group said, reaching 18.1% excluding Miller, while the lower EBITDA margin at Miller had diluted the group's margin in comparison with the prior year. EBITA at Amalgamated Beverage Industries (ABI), the group's Coca-Cola bottling operation, increased by 24%.

In the nine-month reporting period for Miller, total Miller volumes were down 3.7% after adjusting for a distributor stock reduction program, with domestic volume falling by 4.5%, or 6.2% before the adjustment.

Miller's EBITA for nine months was $250 million, before exceptional items of $52 million, reflecting volume decline as well as the negative impact of brand, pack and geographic mix, increased cost of raw materials and greater energy costs, offset partly by higher selling prices.

SABMiller said that it the rate of decline in Miller's market share over the past year had risen compared to previous years, which it believed was due to a combination of factors including loss of management focus on core brand and disruption during the transaction and subsequent integration into the wider group.


22 May, 2003