/ 17 May 2007

SABMiller posts profits rise, but US leaves bitter taste

Britain-based brewer SABMiller said on Thursday that net profit climbed by almost 15% during its fiscal year, but gains were limited by a disappointing performance in North America.

SABMiller said that net profit increased by 14,5% to $1,649-billion in the year to March 31 from the same period 12 months earlier, according to an official earnings release.

Adjusted pre-tax profit rose 20% to $3,154-billion, above analysts’ consensus forecast that had stood at $2,95-billion, added the owner of the Miller, Pilsner and Peroni beer brands.

Pre-tax profit rose 14% to $2,804-billion.

“Difficult trading conditions persisted in North America,” SABMiller said in its results statement.

“Miller Brewing Company experienced a difficult year with significantly higher commodity costs, declining Miller Lite volume and price competition … negatively impacting results,” it added.

SABMiller was founded in Johannesburg in 1895 and dominates the South African beer market with brands including Castle Lager. It was known formerly as South African Breweries until it bought the Miller brand in 2002. — AFP