SABMiller plc, the world’s second-largest brewer by volume, has reported a 9% rise in its adjusted earnings per share (EPS) for the six months to the end of September 2005, to 340,5 United States cents from a restated 311,1 US cents a year earlier, the company said on Thursday.
SABMiller declared an interim dividend of 13 US cents, up from 12 US cents at the halfway point in 2004.
In dollar terms, the adjusted EPS was 10% higher at 52,7 US cents versus a re-stated 47,9 US cents the previous year. As SABMiller was reporting for the first time using International Financial Reporting Standards, its 2004 results were restated.
The results were in line with analysts’ expectations. The I-Net Bridge consensus forecast was for adjusted EPS of 52 US cents and a dividend of 13 US cents.
Group revenue rose by 10% to $7,9-billion from $7,18-billion a year earlier, while earnings before interest, tax, and amortisation (Ebita) was 12% higher at $1,26-billion versus $1,13-billion.
Adjusted profit before tax, meanwhile, rose by 15% to $1,2-billion, and adjusted earnings, at $667-million, represented a 17% increase on the $572-million reported in the year-earlier period.
SABMiller’s lager beer volumes rose by 10,5% to 91-million hectolitres, while organic growth (excluding acquisitions) was up 5,6% from a year earlier, the company said. Its Ebita margin improved to 16% for the six months.
In North America, the group’s Miller operations performed “satisfactorily” in an intensely competitive environment. Ebita from the region fell by 5% to $286-million, also representing a 5% fall in organic, constant currency terms.
The group’s South African performance was a strong one, with beverages recording 19% Ebita growth to $375-million, and hotels and gaming Ebita rising by 29% to $38-million.
In Europe, Ebita was 27% higher at $379-million (16% growth in organic, constant currency terms), benefiting from strong contributions in Poland and the Czech Republic. Its Africa and Asia division also performed well, with Ebita rising by 17% to $209-million, or 14% in organic, constant currency terms.
Finally, Central America lagged with a 12% drop in Ebita to $32-million, representing an 8% decline in organic, constant currency terms.
Overall, group Ebita was up 12% to $1,26-billion, or 9% in organic, constant currency terms.
Commented CEO Graham Mackay: “The group has delivered further increases in volumes and earnings in the first half, reaffirming our strong growth profile within the global brewing industry.
“Despite the intensely competitive pricing environment in the US this summer, Miller has continued to invest in its brands and its organisation to strengthen its base for sustainable future growth. South Africa’s strong contribution has been supported by further operational improvements as well as robust consumer growth in the local economy.
“The group has successfully secured a controlling interest in the leading Andean brewer Grupo Empresarial Bavaria, which delivers a new platform for growth on the South American continent.”
Looking ahead, SABMiller said the group will continue to benefit from its exposure to attractive growth markets. In the second half of the financial year, increasing input costs from higher commodity prices, ongoing investment in marketing and its business infrastructure, and tough currency comparatives are expected to have an effect on its results.
“Nevertheless, the general outlook remains positive and we expect to deliver growth in comparable adjusted earnings per share for the year,” it concluded. — I-Net Bridge