Global brewing giant SABMiller plc said on Wednesday that the group’s financial performance in the six-month period to September 30 this year was “in line with management’s expectations”, and organic growth of about 5% in lager volumes was recorded.
Providing a trading update to the statement made at the annual general meeting in July and ahead of the release of interim results in November, SABMiller said in North America, Miller’s United States domestic sales to retailers (STRs) were down by 0,3% against the prior year in a trading environment that has become increasingly price-competitive and subject to higher input costs, both of which have affected profitability.
STR growth in the Miller Lite franchise was offset by a net decline in the STRs of other brands.
Volumes of carbonated soft drinks in Central America were approximately 3,5% above the prior year with growth in Honduras and El Salvador, while beer volumes were down about 7% principally as a result of excise increases in El Salvador, it said.
The Europe business generated organic growth in lager volumes of 5%, with a “particularly pleasing” performance in Poland complemented by more moderate growth in most other countries, SABMiller added.
The Africa and Asia business delivered an organic increase in comparable lager volume of 13% over the prior year. This was driven by strong organic growth in China, together with good growth in Mozambique and Tanzania.
The South Africa beverages business benefited from the warm winter weather during the second quarter. Beer volumes over the six months grew by almost 3% on a comparable basis, reflecting good trading in recent months. The favourable weather conditions together with successful promotions during the winter months resulted in an increase in soft-drink volumes of about 10%, it added. — I-Net Bridge