21st Nov 2013 08:56
LONDON (Alliance News) - SABMiller said Thursday pretax profit was up 5% to USD2.43 billion for the half-year, driven in part by growth in its developing markets, increased capacity and consumer reach across a number of its brands.
The firm reports relatively flat group revenue, including joint ventures, for the six months to September 30 2013 of USD17.559 billion up from USD17.476 billion the comparable period in 2012. Revenue, excluding JVs and SABMiller's shares of associates' revenues, was USD11.103 billion, slightly down on USD11.370 billion last year.
The company's adjusted earnings per share was increased for the period; 120.4 cents and 77.7 pence per share, up from 117.3 cents and 74.2 pence, respectively. SABMiller also increased its interim dividend for the half-year, nup at 25.0 cents per share from 24.0 in 2012.
Earnings before interest, taxes, depreciation and amortisation was up 4% for the six months at USD3.268 billion from USD3.153 billion.
SABMiller said that it has seen continued growth in its developing markets during the period, driven by an increase in capacity, consumer reach and investment in brand portfolios.
In its half yearly report, SABMiller said that organic, constant currency group net producer revenue growth was 4%, with group NPR per hectolitre up 2% driven by pricing and premiumisation initiatives during the period. The depreciation of key currencies against the US dollar has adversely impacted reported performance, with organic, constant currency earnings before interest, taxes, depreciation and amortisation growth of 7%, said the company.
Alan Clark, Chief Executive of SABMiller, said, "We have continued to deliver on the potential of our businesses in both developed and developing markets, with revenue and margin improvements amid mixed trading conditions. We have improved the reach of our mainstream brands across most regions, and through initiatives such as the launch of Redd's Apple Ale in the USA, the momentum behind Castle Lite across Africa, and the increasing appeal of Peroni Nastro Azzurro from Europe to Australia, we are strengthening our premium propositions across the group and evolving our high-end brand portfolios to appeal to an ever wider range of consumers and drinking occasions."
Lager products, the biggest product area for SABMiller saw group volume rise to USD133 million from USD132 for the comparable period last year.
Looking at specific territories, the firm said group net producer revenue and volume growth remained strong in Africa and reported a robust performance by South Africa, despite economic headwinds associated with the depreciation of the South African rand. While performance in Latin America was hit by an excise increase in Peru, as well as national strikes and social unrest in Colombia, SABMiller said favourable pricing and a good performance from some premium brands continued to drive group NPR growth in the region.
Double digit NPR growth in China along with good progress in Australia on brand restoration and the establishment of premium growth platforms resulted in group NPR growth for the Asia Pacific region, said the firm, adding that conditions in North America and Europe remained challenging. The declines in the latter regions offset the good growth reported in Africa, said SABMiller.
Amid encouraging growth in developing markets, the company has raised its interim dividend to 25 cents from 24 cents as reported for the same period last year.
The company said trading conditions are expected to remain broadly unchanged, with growth driven by developing markets expected to continue. The company also plans to continue brand development and pack portfolios, as well as seeking opportunities to reach new consumers and enhance its beer category. The firm warns that depreciation of key currencies against the US dollar will adversely impact reported results in the current financial year.
In a separate announcement, SABMiller said Thursday its UK subsidiary, Miller Brands UK, has grown domestic lager volume sales by 5% in the six months to September 30 2013.
Supported by 17% growth of the Pilsner Urquell brand during the period, the firm reported rapidly accelerating sales of its unpasteurised tank beer following a trial period over the summer. The company added that continued strength of the Peroni Nastro Azzurro brand in the UK also contributed to MBUK's performance, with the business achieving record sales during the hot summer month of July.
MBUK outperformed the UK beer market which was flat in volume terms over the half-year.
The firm plans to expand its distribution of Pilsner Urquell on the successful trial.
Shares in SABMiller were trading down 0.15% at 3,230 pence per share in early trading Thursday.
By Alice Attwood; [email protected]; @AliceAtAlliance
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