Shares in SABMiller (SAB) — the world’s second largest brewer – were down 60 cents, or almost one percent in early trade on the JSE Securities Exchange. At 0924 local time, the counter was quoted at R60, from R60,60 at Wednesday’s close.
SABMiller said early on Thursday that Beer South Africa’s volumes for the third quarter of the year were up 2,6%, supported by a strong marketing effort, a more stable consumer environment and favourable weather.
The company on Thursday issued a trading update on its third quarter, after the peak South African December period.
Year-to-date volumes are now up about one percent over last year, SABMiller said.
The good weather also helped soft drink subsidiary ABI deliver third quarter volume growth of 5,9%, with year to date growth of 6,9%.
Reported earnings from all the South African businesses for the nine months are ahead of last year, assisted by improvement in the rand-dollar exchange rate during the third quarter.
Miller Brewing Company’s domestic volumes, excluding contract brewing, remain behind last year, down 3% for the six months since acquisition.
Competitive pricing pressures and a difficult economic environment are still adversely affecting results from Central America, however, European operations maintained the momentum of the first half, with volume growth of 11,6% for the three months.
Africa and Asia’s performance continue in line with expectations with Africa well ahead of last year.
“The group’s objective of delivering real earnings per share growth for the full year remains intact,” the group said. ‒ I-Net Bridge