24th Sep 2007 17:00
SABMiller PLC24 September 2007 Ref 29/2007 24 September 2007 SABMiller executives highlight strong, broad-based lager growth across the group with volume and margin recovery at Miller At an investor presentation in New York today, SABMiller's senior managementteam will reiterate its confidence in the group's future growth prospects in aseries of presentations focused on the strategic drivers in the company's mainmarkets. As a group, SABMiller has continued its strong start to the year, with organicgrowth in lager volumes of over 11% for the five months to the end of August2007, driven by Africa & Asia, Latin America and Central and Eastern Europe. In North America, Miller's domestic sales to retailers (STRs) have increased by1.3% on an organic basis after an adjustment for one less trading day in thefive month period, with Miller Lite STRs up by 1.7%. Miller's strategy to growMiller Lite in the mainstream light category and to migrate its brand portfolioto higher margin segments has contributed to an increase of 4.0% in domestic netrevenue per barrel. Miller Chill, the company's new 'chelada style' light beer,sold almost 300,000 barrels in the period and is well on its way to exceedingits target of 400,000 barrels for the year, whilst volumes of the group'sinternational worthmore brand Peroni Nastro Azzurro, and craft beerLeinenkugel's, are up by strong double digit percentages. As a result of thisvolume performance, the improving sales mix and further cost efficiencies,Miller expects to see margin improvement significantly in excess of 50 basispoints in the current year. In Europe, where the group has grown organic constant currency EBITA by almost20% in each of the past 6 years, the group continues to drive strong volumegrowth and to take market share despite intense international competition. Asthese mainly Central and Eastern European markets develop, SABMiller isexploiting its ownership of the most valuable brand portfolios in thesecountries, improving mix through the development of innovative worthmoreproducts and leading mainstream brand propositions. SABMiller's operations in Latin America offer significant potential for futuregrowth given historical under-investment in the beer category. The group is nowputting substantial expenditure behind improvements to the image of its productsand in developing strong portfolios of differentiated brands that appeal to awider range of consumers and drinking occasions. Further investment in thegroup's production capacity, route to market and retail points of sale, throughinitiatives such as fleet upgrades, telesales operations and the enhancement ofmerchandising, will further support top-line growth. These investments are alsoexpected to enhance margins in the medium term, although the effect will be toconstrain them in the near term. Whilst the business has recently enjoyed aperiod of unexpectedly high volume growth during the initial implementation ofthe group's plans, this growth is expected to moderate over the remainder of theyear. The favourable economic landscape in South Africa will continue to underpinfuture volume and revenue drivers in both lager and soft drinks as the groupinvests to rejuvenate the mainstream beer category and to enhance itscompetitive position in the worthmore product segment. Building on the successof Peroni Nastro Azzurro and the recently launched Hansa Marzen Gold, the groupwill consider further new product launches in addition to improving marketpenetration through the expansion of trade licensing and direct delivery. Thereintroduction of the Amstel brand following the contract termination earlierthis year appears to have been delayed, limiting the anticipated financialimpact to US$40-50 million in the current year. SABMiller's Africa & Asia operations are also growing rapidly. In China, thegroup's joint venture has become the country's leading brewer and its mainbrand, SNOW, is also the country's largest lager brand with a 10% share of themarket. In India, where the group's market share is approaching 35%, the recentacquisition of the Foster's brand is driving excellent growth in its mild beerportfolio. Elsewhere in Asia, SABMiller has recently commenced operations inVietnam and it continues to seek further opportunities in the region. Thedevelopment of African economies is creating opportunities to cater to a rangeof consumers with increasingly full brand portfolios. The group is investing insignificant additional capacity and extending distribution to further extend itsgrowth and leadership across the African continent. The investor presentation and Q&A will be broadcast live by webcast on thecompany's website, www.sabmiller.com beginning at 13.30 EDT / 18.30 BritishSummer Time. A replay will be available following the presentation. A tradingupdate for the group's first fiscal half will be published on 15 October, 2007. Ends About SABMiller plc SABMiller plc is one of the world's largest brewers with brewing interests ordistribution agreements in over 60 countries across six continents. The group'sbrands include premium international beers such as Miller Genuine Draft, PeroniNastro Azzurro and Pilsner Urquell, as well as an exceptional range of marketleading local brands. Outside the USA, SABMiller plc is also one of the largestbottlers of Coca-Cola products in the world. In the year ended 31 March 2007, the group reported US$3,154 million adjustedpre-tax profit and revenue of US$18,620 million. SABMiller plc is listed on theLondon 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 ofcharge from www.sabmiller.com or www.newscast.co.uk Enquiries:----------------- SABMiller plc Tel: +44 20 7659 0100 Sue Clark Director of Corporate Affairs Tel: +44 20 7659 0184 Gary Leibowitz Senior Vice President, Investor Tel: +44 20 7659 0119 Relations Nigel Fairbrass Head of Media Relations Tel: +44 7799 894 265 This announcement does not constitute an offer to sell or issue or thesolicitation of an offer to buy or acquire securities of SABMiller plc (the"Company") or any of its affiliates in any jurisdiction or an inducement toenter into investment activity. This document includes "forward-looking statements". These statements maycontain the words "anticipate", "believe", "intend", "estimate", "expect" andwords of similar meaning. All statements other than statements of historicalfacts included in this announcement, including, without limitation, thoseregarding the Company's financial position, business strategy, plans andobjectives of management for future operations (including development plans andobjectives relating to the Company's products and services) are forward-lookingstatements. 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 fromfuture results, performance or achievements expressed or implied by suchforward-looking statements. These forward-looking statements are based onnumerous assumptions regarding the Company's present and future businessstrategies 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 anyupdates or revisions to any forward-looking statements contained in thisannouncement to reflect any change in the Company's expectations with regardthereto or any change in events, conditions or circumstances on which any suchstatement is based. Any information contained in this announcement on the priceat which the Company's securities have been bought or sold in the past, or onthe yield on such securities, should not be relied upon as a guide to futureperformance. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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