South African brewing giant SABMiller (SAB) on Thursday reported that group financial performance in the five-month period to August 31 this year was strong, and earnings growth was recorded in all of its businesses.
In a trading update ahead of interim results in November, SABMiller said for the same period, the group’s organic lager volume growth was more than 4%.
In South Africa, beer volumes have grown by about 4%, with further gains in share of the total liquor market. At ABI, CSD volumes were up by 7% from the prior year. Strong operating performances have been enhanced by favourable currency movements, SABMiller said.
In North America, Miller’s United States domestic sales to retailers increased by 2% for the period to mid-September, with growth in the Miller Lite franchise being partially offset by reductions in other brands. Financial performance has benefited from favourable brand mix and price increases, the group said.
While beer volumes in Central America remain largely unchanged, volumes of carbonated soft drinks (CSD) were about 5% below prior year, reflecting continuing price-based competition in the market. The business continues to benefit from previous cost rationalisation activities and selective price increases in both beer and CSDs.
SABMiller’s Europe business produced satisfactory results, with organic lager growth of 3%. In addition to continued volume growth in Russia and Romania, the second quarter’s volume trends in the key markets of Poland and Czech are better than in the first quarter, partially offset by weakness in Italy and Hungary.
The Africa and Asia business delivered a pleasing increase in organic lager volume of 9% from the prior year, reflecting growth in China against a comparable period impacted by severe acute respiratory syndrome, and growth in key African markets. — I-Net Bridge