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SAB - SABMiller plc - SABMiller plc trading update
SABMiller plc
JSE ALPHA CODE: SAB
ISSUER CODE: SOSAB
ISIN CODE: GB0004835483
SABMiller plc Trading Update
SABMiller plc today issues the following update on trading for the 12 months
to 31 March 2011. The calculation of the organic growth rates excludes the
effects of acquisitions and disposals.
On an organic basis lager volumes for the year were 2% ahead of the prior
year, with growth of 3% in the fourth quarter. Full year and fourth quarter
soft drinks volumes grew 3% on an organic basis. All divisions other than
North America grew volumes during the second half of the year. Group revenue
for the full year grew by 5% on an organic, constant currency basis, with
group revenue per hl growth of 3% on the same basis. Compared to the prior
year, raw material costs on a US dollar per hectolitre, constant currency
basis, were marginally lower for the full year although they increased
moderately in the second half, and sales and marketing investment grew year on
year. The group`s overall financial performance is in line with our
expectations.
Latin America`s lager volumes were level with the prior year on an organic
basis, following growth of 1% in the fourth quarter. In Colombia full year
lager volumes declined by 6% as a result of the emergency tax levied
specifically on the beer category in February 2010 as well as exceptional
widespread flooding which impacted consumer demand and product availability
during the peak period. Peru`s full year lager volume growth of 10% was
boosted by the country`s continued strong economic recovery and our ongoing
brand development initiatives. Ecuador lager volumes were up 1%, as improved
product availability and sales initiatives helped to offset government
restrictions on alcohol sales. Soft drinks volumes were 1% lower mainly as a
result of price increases in Honduras and El Salvador.
In Europe, full year lager volumes declined by 3% reflecting a particularly
challenging first half impacted by generally weak economic conditions. Fourth
quarter volumes were up 2% benefiting from a weak comparative period due to
prior year excise increases in Russia and the Czech Republic. Poland`s volumes
were down 4% for the year with the market impacted by widespread flooding and
alcohol sales restrictions during a nine day national mourning period in the
first half, as well as significant competitor discounting in the economy
segment. In the Czech Republic our volumes were down 6% due to continued
weakness in the on-premise channel in which we are over-indexed, further
downtrading into lower value segments where we are under-represented, and
increased competitor discounting. Russia`s full year volumes were 1% ahead of
the prior year as a result of a stronger second half supported by a gradual
economic recovery, and despite competitor price reductions in the local
premium segment. In the fourth quarter Russia`s volumes grew by 17% reflecting
lower volumes in the fourth quarter of the previous year following significant
buy-in ahead of the January 2010 excise increase. Volumes in Romania were down
8% as the market remained in recession and continued to be impacted by
government austerity measures.
For the 12 months ended 31 March 2011, MillerCoors` US domestic sales to
retailers (STRs) were down 2.6%, with a 1.4% decline in the quarter to March
in a market which remains challenging. Premium light STRs were level in the
quarter as growth in Coors Light was accompanied by improved Miller Lite
performance with volumes nearly level. The below premium portfolio was down
low-single digits in the quarter amid continued industry uptrading. The Tenth
and Blake craft and imports division saw double-digit growth, mainly driven by
the strong performance of Blue Moon, Leinenkugel`s and associated seasonal
craft brand extensions. Domestic sales to wholesalers (STWs) declined 2.7% for
the year ended 31 March 2011, with a 2.5% decline in the fourth quarter.
In Africa lager volumes for the full year grew 13% on an organic basis
assisted by a strong final quarter. Excluding our share of Zimbabwe`s volumes,
lager volume growth would have been 9%. In Tanzania lager volumes grew by 5%
with particularly strong growth in the premium segment, and assisted by the
new Mbeya brewery in the south. In Uganda volumes grew by 20%, ahead of market
growth, driven by our continuing strong market execution. Mozambique volumes
were up 7%, assisted by new capacity following the Nampula brewery
commissioning in the third quarter of the previous year. Lager volume growth
in Angola moderated during the final quarter, but the new Luanda brewery
enabled strong full year growth of 26%. In Zimbabwe our associate saw robust
growth in lager and soft drinks volumes. After a very strong final quarter,
Zambia lager volumes ended the year up 28% with growth fuelled by stronger
prevailing economic conditions and the excise reduction at the start of the
year. Our associate Castel delivered full year lager volume growth of 4%,
driven by good volume performance in Nigeria, the Democratic Republic of
Congo, Benin and Chad. Soft drinks volumes for the year grew by 8% (4% growth
excluding Zimbabwe) on an organic basis.
Lager volumes in Asia grew by 8% on an organic basis in the fourth quarter and
by 10% for the year. Full year lager volume growth of 10% in China on an
organic basis was driven in part by share gains in a market that continued to
grow. In India volumes for the year were also 10% higher although restrained
by regulatory issues in Andhra Pradesh, which have impacted performance since
July 2010.
In South Africa, lager volumes for the year grew 2% as a result of our
upweighted brand and market facing investment together with some improvement
in consumer confidence. Despite the absence of an Easter peak period this year
lager volumes in the fourth quarter were level with the prior year. Our core
power brand portfolio continued to gain momentum, with sustained strong growth
from Castle Lite and good performances from Castle Lager and Hansa Pilsener.
Soft drinks volumes grew 3% for the year reflecting early success for the new
soft drinks growth strategy, notwithstanding a 3% decline in volumes in the
fourth quarter due to wet and cold weather and the absence of an Easter
period.
ENDS
Notes to editors
SABMiller plc is one of the world`s largest brewers with brewing interests and
distribution agreements across six continents. The group`s wide portfolio of
brands includes premium international beers such as Pilsner Urquell, Peroni
Nastro Azzurro, Miller Genuine Draft and Grolsch, as well as leading local
brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller is
also one of the world`s largest bottlers of Coca-Cola products.
In the year ended 31 March 2010, the group reported US$3,803 million adjusted
pre-tax profit and group revenue of US$26,350 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.sabmiller.com/imagelibrary
Broadcast footage is available in internet or SD/HD quality for download free
of charge from www.sabmiller.com/broadcastfootage
Enquiries
SABMiller plc
t: +44 20 7659 0100
Sue Clark
Director Corporate Affairs
SABMiller plc
t: +44 20 7659 0184
Gary Leibowitz
Senior VP, Investor Relations
SABMiller plc
t: +44 20 7659 0174
Nigel Fairbrass
Head of Media Relations
SABMiller plc
t: +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: 19/04/2011 08:00:16 Supplied by www.sharenet.co.za
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