SABMiller Sales Boosted By Strong Volumes In Asia, Africa
July 21 2011 - 6:47AM
Dow Jones News
SABMiller PLC (SBMRY), the FTSE 100 brewer pursuing a
multi-billion dollar takeover of Australia's Foster's Group Ltd.
(FGL.AU), Thursday posted a rise in first-quarter sales on higher
volumes, driven by robust demand in emerging markets.
SABMiller, the world's second-biggest brewer by volume after
Anheuser-Busch InBev NV (ABI.BT), benefited from a strong
performance in Asia and Africa, where socio-economic improvement,
rising incomes and a thirst for Western lifestyles are fuelling
consumption. That helped offset sluggish growth in more mature
markets which are suffering from a cutback in consumer spending,
high unemployment levels and a saturated marketplace.
Sales, excluding acquisitions and disposals, rose 7% in the
first three months of the fiscal year on a constant currency basis,
boosted by price increases and more purchases of higher-priced
products. Sales per hectoliter were up 2%.
Lager and soft drinks volumes rose 5%, compared with a 1% drop a
year earlier.
The maker of Grolsch, Peroni Nastro Azzuro and Miller Lite
continues to increase brand investment in developing economies,
which also include Latin America and Eastern Europe.
Emerging markets currently account for around 80% of the
company's earnings, which has helped it outperform rivals in recent
years. Sales in Western Europe and North America have weakened as
government austerity measures hit the spending power of
cash-strapped drinkers.
So the company's US$9.98 billion bid for Foster's Group has
surprised some industry observers, given the Australian beermaker's
presence in mature markets. The offer was rejected by the
Melbourne-based group last month. Analysts expect SABMiller to
return with a higher offer, although the company remained
tightlipped on the topic Thursday.
Previously, SABMiller guided for a low single digit increase in
input costs in fiscal 2012.
At 1009GMT, the company's shares were down 14 pence, or 0.6%, at
2301 pence, in a lower London market.
By Simon Zekaria, Dow Jones Newswires; +44 207 842-9410;
simon.zekaria@dowjones.com
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