By Peter Evans
LONDON-- SABMiller PLC Wednesday said consumers from Africa to
America had started splashing out on pricier beer brands, helping
the world's second-biggest brewer offset currency headwinds and
stagnating lager volumes in its most recent fiscal year.
SAB, the maker of more than 200 beers world-wide, said net
profit for the year ended March 31 was $3.30 billion, compared with
$3.38 billion a year earlier, on revenue that was broadly flat.
At constant currencies, revenue rose 6% to $22.13 billion in the
year as SAB was able to bring in price increases and convince
drinkers to shift up to more-expensive brands. Sales of the
brewer's premium brands rose 8%, while its global labels--including
Peroni and Miller Genuine Draft--increased 16%.
Lager volumes remained flat on the year, reflecting weakness in
China and North America. SAB said China returned to growth in the
last three months of the year after "exceptionally adverse" weather
had hampered sales over the summer.
Earnings before interest, tax and amortization were $6.38
billion, beating estimates and sending the company's shares up more
than 2% in London trading.
Continuing a recent trend, soft drinks showed more fizz than
lager, with sales volumes increasing 8%. SAB has expanded
aggressively into nonalcoholic beverages in recent years, forming
alliances with Coca-Cola Co. to bottle soda and releasing a range
of malt-based drinks, mainly in West Africa. Soft drinks now make
up around 21% of the company's volumes, up from 17% five years
ago.
"We are principally a beer company, but we do have an important
complimentary portfolio of soft drinks," said Chief Executive Alan
Clark. "The shift in emphasis recognizes the level of growth
available to us."
Mr. Clark said sales would be challenging in the year ahead,
especially in developed markets like Western Europe and Australia.
The company said the strength of the dollar against the euro--and
currencies in emerging markets--would continue as a headwind
through 2015.
SAB is at the center of a long-rumored web of consolidation in
the beer industry. Last year, the U.K. brewer had an approach for
Dutch rival Heineken NV rejected. SAB itself is often considered a
target for Anheuser-Busch InBev SA, the world's No. 1 brewer by
sales. Mr. Clark declined to comment on the speculation.
"Those are decisions shareholders will take over time," he
said.
Write to Peter Evans at peter.evans@wsj.com
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