SABMILLER PLC - Trading Update

Trading Update

SABMiller plc
JSEALPHA CODE: SAB
ISIN CODE: SOSAB
ISIN CODE: GB0004835483
23 July 2015



SABMiller plc Trading Update
SABMiller plc today issues its trading update for the group’s first quarter ended 30 June 2015.

Alan Clark, Chief Executive of SABMiller, said:

“Both revenue and volumes grew strongly in Latin America and Africa in the quarter, tempered in
particular by a challenging quarter in our key European markets where the trading environment
remains difficult and softer volumes in China. We continue to make good progress in our strategy of
driving top line growth which is reflected in the growth of revenue per hectolitre across our regions.”


First quarter highlights
• Group net producer revenue (NPR) grew by 3% on level beverage volumes, reflecting group NPR
   per hectolitre (hl) growth in all regions
• Good beverage volume growth in Latin America and Africa was offset by declines in Europe in
   particular, together with Asia Pacific and North America
• Soft drinks volumes were up 4% offset by a 1% decline in lager volumes
• Reported group NPR declined by 10% due to the depreciation of key currencies against the US
   dollar


Q1 growth                                   Group NPR        Beverage volume           Group NPR/hl
Organic, constant currency                      growth                growth                 growth
                                                    %                      %                     %
Latin America                                        6                      5                     1
Africa                                               7                      4                     4
Asia Pacific                                         4                     (3)                    7
Europe                                              (4)                    (6)                    2
North America                                        -                     (2)                    2
Total                                                  3                      -                     3



The calculation of the organic growth rates excludes the impact of acquisitions and disposals. All
growth rates in this release are over the prior year comparative period and are quoted on an organic
basis for volumes and an organic, constant currency basis for group NPR and group NPR per hl.


Latin America
Stronger growth, led by Colombia
Group NPR in Latin America increased by 6%, driven by beverage volume growth of 5%, with lager
volume growth of 4% and soft drinks volume growth of 7%. In Colombia, group NPR grew by 10%
with beverage volumes up 9%. Strong lager growth of 9%, cycling a soft comparative due to a
significant number of dry days, benefited from strong market execution around sporting events and
the success of our above mainstream brands Aguila Light and the recently launched alcohol-free
Aguila Cero. The premium portfolio saw strong growth driven by Club Colombia and Miller Lite. In
Peru, group NPR growth of 4% was driven by beverage volume growth of 3%, underpinned by
continued growth of Pilsen Callao and the return to growth of Cusqueña, our premium brand. In
Ecuador, group NPR grew by 1% reflecting positive brand mix, with beverage volumes down 1% due
to a difficult trading environment. In Central America, group NPR grew by 1% driven by beverage
volume growth of 4%, with soft drinks volume growth of 6%. Lager volumes declined by 4% due to an
excise-driven price increase in Panama in April.


Africa
Continued growth momentum in Africa
In Africa, group NPR grew by 7% reflecting beverage volume growth of 4%, together with positive mix
and moderate price increases across the region. Both lager volumes and soft drinks volumes grew by
4%. Group NPR in South Africa grew by 5%, driven by selective price increases on strategic packs
and brands, together with premiumisation due to continued strong growth of Castle Lite. Lager volume
growth of 1% was adversely impacted by the timing of Easter trading and the continued electricity
outages which had a negative effect on consumption. Soft drinks volumes also grew by 1%, cycling a
strong comparative. Group NPR in Tanzania declined by 3%, driven by a beverage volume decline of
9% as a result of excise-related and other pricing taken in the course of the prior year, together with
negative brand and category mix. In Mozambique, group NPR grew by 24%, underpinned by
beverage volume growth of 20% together with favourable pack and category mix. Robust lager
volume growth was driven by our mainstream brand 2M and the affordable, cassava-based, Impala
brand. Group NPR in Zambia grew by 7% reflecting favourable category and brand mix. Beverage
volumes grew by 2%, with strong lager volume growth benefiting from strategic price reductions on
selective packs partly offset by a decline in the more significant traditional beer volumes, together with
a decline in soft drinks volumes. In Nigeria, group NPR growth remained strong, up 26%, driven by
beverage volume growth as a result of enhanced market penetration and increased capacity. Group
NPR in Zimbabwe declined by 8%, with beverage volumes declining due to the continued challenging
economic conditions. Castel delivered single digit group NPR growth supported by beverage volume
growth of 3%, held back by tough economic conditions in Angola.


Asia Pacific
Group NPR per hl growth in both Australia and China offsetting the volume decline
In Australia, the total beer category continued to decline and was adversely impacted by the timing of
Easter trading. Group NPR declined by 2% and beverage volumes declined by 5%. Group NPR per hl
growth was supported by positive brand mix reflecting growth in the premium and contemporary
segments driven by Great Northern. Our mainstream brands Victoria Bitter and Carlton Draught
declined. In China, group NPR grew by 6% and beverage volumes declined by 3%, outperforming the
market. Group NPR per hl growth was driven by an increase in one-way packaging volumes and the
continuing premiumisation of the portfolio, led by Snow Brave the World which now represents
approximately 20% of CR Snow’s total volume. In India, group NPR grew by 15% underpinned by
volume growth of 9% and price increases across several states. The volume growth reflects the
cycling of a soft comparative, with the prior year impacted by trading restrictions imposed during the
national elections.


Europe
A challenging quarter as Europe cycles a strong performance in the prior period
In Europe, group NPR declined by 4% with beverage volumes down 6%, driven by a lager volume
decline of 8% reflecting challenges in our key markets. In the Czech Republic and Slovakia, group
NPR decreased by 6% with volumes down 8%, impacted by the timing of the Easter trading period as
well as the recent major IT deployment. In Poland, group NPR declined by 17% with volumes down
15% in a weak beer market cycling a strong comparative prior year quarter. This was exacerbated by
the delisting of our brands from a leading convenience chain and adverse price positioning of our
brands relative to the competition. Group NPR decreased by 4% in the United Kingdom, where the
continued growth of Peroni Nastro Azzurro was offset by declines in the Polish brand portfolio. In Italy,
group NPR was up 1% with lower volumes offset by increased group NPR per hl due to firmer pricing.
Across our remaining European subsidiaries, group NPR grew by low single digits. Our associate
Anadolu Efes’ lager volume declined while group NPR per hl improved, driven by price increases and
favourable mix. Continued weakness in lager volumes was predominantly driven by geopolitical
uncertainty in Ukraine and a beer market decline in Russia.


North America
Soft overall volumes, but with an acceleration in MillerCoors’ above premium performance
North America group NPR was in line with the prior year, reflecting the performance of MillerCoors.
While MillerCoors’ volumes were lower, this was offset by growth in group NPR per hl due to higher
net pricing and favourable brand mix, mainly due to growth in the above premium segment. US
domestic sales volumes to retailers (STRs) declined by 3% in the quarter, reflecting weaker trading in
late May and June. The STR decline was driven by the below premium portfolio with high single digit
declines in Keystone Light and Milwaukee’s Best, as well as a mid single digit decline in Miller High
Life. Premium light STRs declined low single digits with similar declines in both Coors Light and Miller
Lite. Total above premium brands grew low single digits led by the double digit growth of the Redd’s
franchise, mid single digit growth in the Blue Moon franchise and high single digit growth in the
Leinenkugel’s portfolio. Miller Fortune declined as the brand cycled the first quarter after its launch in
February 2014. Domestic sales to wholesalers (STWs) declined by 2% in the quarter.


ENDS



Notes to editors
SABMiller is in the beer and soft drinks business, bringing refreshment and sociability to millions of
people all over the world who enjoy our drinks. The company does business in a way that improves
livelihoods and helps build communities.

SABMiller is passionate about brewing and has a long tradition of craftsmanship, making superb beer
from high quality natural ingredients. Our local beer experts brew more than 200 beers from which a
range of special regional and global brands have been carefully selected and nurtured.

SABMiller is a FTSE-20 company, with shares trading on the London Stock Exchange, and a
secondary listing on the Johannesburg Stock Exchange. The group employs around 69,000 people in
more than 80 countries, from Australia to Zambia, Colombia to the Czech Republic, and South Africa
to the USA. Every minute of every day, more than 140,000 bottles of SABMiller beer are sold around
the world.

In the year ended 31 March 2015, SABMiller sold 324 million hectolitres of lager, soft drinks and other
alcoholic beverages, generating group net producer revenue of US$26,288 million and EBITA of
US$6,367 million.



This announcement is available on the company website: www.sabmiller.com


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Enquiries
SABMiller plc
t: +44 20 7659 0100

Richard Farnsworth                            Christina Mills                                        Gary Leibowitz
Business Media Relations                      Director, Group Communications                         Director,
Manager                                       and Reputation                                         Investor Engagement
SABMiller plc                                 SABMiller plc                                          SABMiller plc
T +44 20 7659 0188                            T +44 20 7659 0105                                     +44 20 7659 0119


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 announcement 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.




Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd

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