Brewing giant SABMiller expects a recovery in consumer spending only towards the end of 2010 as it reported a 17% rise in annual earnings on Thursday, which narrowly missed consensus forecasts.
The world’s number two brewer and maker of Miller Lite, Peroni and Grolsch said raw-material input prices such as barley will only be level or marginally down in the current year after analysts had expected a fall reflecting lower commodity prices.
Chief executive Graham Mackay said that the economic environment was beginning to improve in some of its emerging markets, which earn more than 85% of group profits, but a full recovery would take longer.
“A broader recovery in consumer spending is not expected before the second half of the current financial year,” Mackay said in a results statement referring to its current year to March 2011.
The London-based group reported adjusted earnings per share of 161,1 US cents for the year to end-March, compared with consensus of 163,3 cents from a Reuters survey of 10 analysts and 161,6 cents from a company compiled consensus.
The full-year dividend rose 17% to 68 cents a share. — Reuters