TIDMSAB
RNS Number : 7973V
SABMiller PLC
19 January 2012
19 January 2012
SABMiller plc Trading Update
SABMiller plc today issues its interim management statement for
the group's third quarter ended 31 December 2011. The calculation
of the growth rates in this update excludes the effects of
acquisitions and disposals on volumes and revenues, unless
otherwise stated.
Lager volumes for the third quarter were 3% ahead of the prior
year with good growth in all our regions with the exception of
Europe and North America. Soft drinks volumes grew by 6% for the
quarter with growth across all regions. Organic, constant currency
group revenue grew 7% for the quarter. Group revenue per hectolitre
grew 3% on the same basis supported principally by price benefits,
with mix gains achieved in all regions except Europe. Overall,
financial performance for the quarter was in line with our
expectations.
In Latin America, lager volumes continued to show robust growth
with volumes up 8%. Colombia's lager volumes increased by 6% with
premium lager growth in excess of 30% due to successful seasonal
offerings and campaigns. Continuing price restraint, improved
weather and economic growth also contributed. In Peru lager volumes
grew by 9% as consumers traded up from the informal alcohol sector
supported by the national roll-out of the renovated Pilsen Callao
brand and successful Cusquena campaigns. Ecuador's lager volumes
increased by 15% supported by the implementation of the direct
service model and a focus on festivals and events which encouraged
consumers to move into the beer category. In Central America lager
volumes were up 6% with a particularly strong performance in El
Salvador following the introduction of larger packs as part of our
"affordability strategy". Soft drinks volumes in Latin America grew
by 8%, with our non-alcoholic malt brands up 21% and now rolled out
into Central America.
Europe's lager volumes were down 2%. Beer markets remain
affected by intense competition, which continued negatively to
impact mix, as well as fragile economic conditions. Volumes in
Poland and Romania were both down by 6% reflecting the impact of
planned de-stocking of wholesaler and distributor inventories as
well as continuing competition in pricing and promotions. In the
Czech Republic, domestic volumes grew by 2% reflecting the
continued strong performance of brand and package innovations.
Volumes were down 6% in Russia in a declining beer market. Strong
growth continued in Ukraine where volumes increased by 20%.
MillerCoors domestic sales to retailers (STRs) declined 3.3% in
the quarter on a trading day adjusted basis. Premium light brand
volumes fell by low single digits with Miller Lite down mid single
digits and a low single digit decline for Coors Light. The Tenth
and Blake division saw double digit growth driven by the success of
craft brands and beer merchants' programmes. Below premium volumes
were down mid single digits. Domestic sales to wholesalers (STWs)
were down 1.6% in the quarter compared with the prior year.
Lager volumes in Africa grew by 11%, despite cycling strong
comparatives (third quarter volumes grew by 12% last year) and
capacity constraints in a number of markets. In Tanzania lager
volumes grew by 13% driven by both solid growth in premium brands
and the strengthening of mainstream brands due to expanded and
intensified sales and distribution. Continued extension of market
penetration grew lager volumes in Uganda, up 17%. In Zambia lager
volumes increased 16% underpinned by robust growth of our
mainstream portfolio against a backdrop of strong economic
conditions. Lager volumes in Mozambique grew by 8% benefiting from
the launch of the Impala brand, a cassava based beer, and strong
growth in the north of the country. In Zimbabwe our associate
delivered lager volume growth of 19% supported by further improved
product availability. Our associate Castel grew lager volumes by 9%
with a strong performance in Cameroon and the Democratic Republic
of Congo. Soft drinks volumes grew by 9% driven by solid
performances from South Sudan, Ghana, Zimbabwe, and from our
associate Castel.
In Asia Pacific lager volumes grew by 7% on an organic basis.
Volumes in China grew 5%, despite cycling a strong comparative
period. Including the impact of regional acquisitions, China's
volumes were up 11%. In India volumes were up 21% benefitting from
the lifting of trading restrictions in Andhra Pradesh, which had
constrained volumes in the same quarter of the prior year, as well
as good growth in the focus states of Karnataka and Haryana.
On 16 December 2011, the group completed the acquisition of
Foster's in Australia for a total cash consideration of
approximately A$10,483 million (approximately US$10,465 million),
and the Asia segment was renamed the Asia Pacific segment. Volumes
for Foster's are not included in third quarter group or divisional
results. On a pro forma basis, Foster's volumes for the quarter
ended 31 December 2011 were 6% below the same period in the prior
year. The beer category overall is estimated to have declined at a
slightly slower rate in the quarter.
In South Africa, in a challenging economic environment, lager
volumes grew 2%. Growth was driven largely by momentum from our
core power brands, particularly Castle Lite and Castle Lager, as we
continued to make targeted investments in our portfolio and focused
on improving retail execution and customer service. Soft drinks
volumes increased 1% despite tough trading conditions and cycling
strong growth of 9% in the comparative quarter. The performance was
buoyed by growth in two litre PET and immediate consumption
packs.
On 19 October 2011, the group announced its intention to form a
strategic alliance with Anadolu Efes. The group intends to transfer
its Russian and Ukrainian beer business to Anadolu Efes, and to
take a 24% equity stake in the enlarged group, which will be the
vehicle for both groups' investments in Turkey, Russia, the CIS,
Central Asia and the Middle East. The alliance will result in the
enlarged Anadolu Efes strengthening its market position to become
the number two brewer, in value terms, in the large Russian beer
market. It is already the leading beverage producer in Turkey, with
89% of the beer market and a 69% share of the carbonated soft
drinks market, and it has leading market positions in the growth
beer markets of Kazakhstan, Moldova and Georgia. Subject to
finalisation of the definitive legal agreements and relevant
regulatory approvals, the group expects to complete the transaction
before the end of the financial year ending 31 March 2012.
On 4 November 2011, East African Breweries Limited launched a
public offer through the Dar-es-Salaam Stock Exchange for the sale
of its 20% interest in Tanzania Breweries Ltd, the group's
subsidiary in Tanzania. The offer closed on 25 November 2011.
SABMiller Africa BV applied for all of the shares offered, but the
offer was substantially oversubscribed, and after priority
allocations were made to applicants who were Tanzanian residents or
East African residents in accordance with local securities laws,
SABMiller Africa BV was allocated shares representing an additional
4.72% of Tanzania Breweries Limited, increasing its interest to 58%
(36% group effective economic interest).
On 25 November 2011 SABMiller Africa BV disposed of its 20%
interest (12% group effective economic interest) in its associate
Kenya Breweries Limited to East African Breweries Limited for cash
consideration of US$205 million.
During November and December 2011 two of SABMiller's African
subsidiaries, Zambian Breweries plc in Zambia and Nile Breweries
Ltd in Uganda, launched rights issues to raise approximately US$70
million each, and in January 2012 the group's subsidiary in
Mozambique, Cervejas de Mocambique SARL, launched a rights issue to
raise approximately US$40 million, in each case primarily to fund
recently announced capacity expansions. The rights issues in Uganda
and Mozambique remain open, and, following closing of the rights
issue in Zambia, SABMiller Africa BV's interest remains unchanged
at 87% (group effective economic interest unchanged at 54%).
With effect from 1 January 2012, the group and Castel
implemented a number of organisation changes in their African
operations as part of their strategic alliance agreement. The
changes involve the combination of the operational management of
the Castel and SABMiller businesses in Nigeria and Angola, with the
Nigerian businesses being managed in future by SABMiller, and the
Angolan businesses being managed by Castel.
On 13 January 2012, the group completed the acquisition from
Coca-Cola Amatil Limited (CCA) of CCA's 50% interest in the group's
Australian joint venture, Pacific Beverages (Pte) Limited, for cash
consideration of A$326 million. Pacific Beverages is now a wholly
owned subsidiary of SABMiller.
On 17 January 2012, the group successfully completed a US$7,000
million bond issue in four tranches: US$1,000 million 1.85% notes
due 2015, US$2,000 million 2.45% notes due 2017, US$2,500 million
3.75% notes due 2022 and US$1,500 million 4.95% notes due 2042. The
net proceeds were used to repay in part the bank borrowing incurred
to finance the acquisition of Foster's.
In December 2011 the group announced the appointment of Ari
Mervis (who had been Managing Director, SABMiller Asia since 2007)
as Managing Director, SABMiller Asia Pacific and Chief Executive
Officer of Foster's, with effect from 16 December 2011. The group
also announced the appointment of Harald Harvey as Managing
Director Asia, with effect from 1 February 2012. Harald will report
to Ari Mervis and will oversee SABMiller's businesses in India and
Vietnam, and its ongoing regional business development and export
operations, as well as providing support to CR Snow.
END
Notes to editors
SABMiller plc is one of the world's largest brewers with brewing
interests and distribution agreements across six continents. The
group's wide portfolio includes global brands Pilsner Urquell,
Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch, as well as
leading local brands such as Aguila, Castle, Miller Lite, Snow,
Tyskie and Victoria Bitter. SABMiller is also one of the world's
largest bottlers of Coca-Cola products.
In the year ended 31 March 2011, the group reported US$4,491
million adjusted pre-tax profit and group revenue of US$28,311
million. SABMiller plc is listed on the London and Johannesburg
stock exchanges.
This announcement is available on the company website:
www.sabmiller.com
High resolution images are available for the media to view and
download free of charge from www.sabmiller.com/imagelibrary
Broadcast footage is available in internet or SD/HD quality for
download free of charge from www.sabmiller.com/broadcastfootage
Enquiries
SABMiller plc t: +44 20 7659 0100
Sue Clark Director Corporate Affairs SABMiller plc t: +44 20
7659 0184
Gary Leibowitz Senior VP, Investor Relations SABMiller plc t:
+44 20 7659 0174
Nigel Fairbrass Head of Media Relations SABMiller plc t: +44
7799 894265
This announcement does not constitute an offer to sell or issue
or the solicitation of an offer to buy or acquire securities of
SABMiller plc (the "Company") or any of its affiliates in any
jurisdiction or an inducement to enter into investment
activity.
This announcement includes "forward-looking statements". These
statements may contain the words "anticipate", "believe", "intend",
"estimate", "expect" and words of similar meaning. All statements
other than statements of historical facts included in this
announcement, including, without limitation, those regarding the
Company's financial position, business strategy, plans and
objectives of management for future operations (including
development plans and objectives relating to the Company's products
and services) are forward-looking statements. These forward-looking
statements involve known and unknown risks, uncertainties and other
important factors that could cause the actual results, performance
or achievements of the Company to be materially different from
future results, performance or achievements expressed or implied by
such forward-looking statements. These forward-looking statements
are based on numerous assumptions regarding the Company's present
and future business strategies and the environment in which the
Company will operate in the future. These forward-looking
statements speak only as at the date of this announcement. The
Company expressly disclaims any obligation or undertaking to
disseminate any updates or revisions to any forward-looking
statements contained in this announcement to reflect any change in
the Company's expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is
based. Any information contained in this announcement on the price
at which the Company's securities have been bought or sold in the
past, or on the yield on such securities, should not be relied upon
as a guide to future performance.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IMSUWUNRUKAAAAR
Sabmiller (LSE:SAB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Sabmiller (LSE:SAB)
Historical Stock Chart
From Apr 2023 to Apr 2024