16th Apr 2009 07:00
16 April 2009
SABMiller plc Trading Update
SABMiller plc today issues the following update on trading for the 12 months to 31 March 2009. The calculation of organic growth rates shown below excludes the effects of acquisitions and disposals.
Lager volumes for the full year were 2% ahead of the prior year and level on an organic basis, with a 1% decline in the fourth quarter. Soft drinks volumes for the full year grew organically by 5%. Economic conditions deteriorated in the second half and consumer demand has fallen in most markets, particularly in the fourth quarter. Group revenue has continued to benefit from price increases and has grown in high single digits for the full year on an organic basis at constant rates of exchange. Financial performance has been impacted by significant unfavourable currency movements in the second half of the year. However, the financial results of the group remain in line with our expectations.
In Latin America, lager volumes were up 1% for the year, with a decline in the fourth quarter. In Colombia, full year volumes were down 6% despite a continuing rise in our share of total alcohol. The fourth quarter was soft, reflecting deteriorating consumer demand and beer price increases. In Peru, volumes ended 9% above the prior year and we gained market share. Growth in the last quarter slowed significantly in a weakening economy. Ecuador volumes grew 14% consistently throughout the year in a market buoyed by an increase in disposable income. Soft drinks volumes for the region grew 2% for the year on an organic basis.
Europe organic lager volumes were level with the prior year reflecting the impact of the economic downturn on consumer disposable income, particularly in the second half of the year. Poland achieved organic volume growth of 3% and increased market share. In Romania, full year volume growth was 18% but the rate of volume growth slowed significantly in the second half. Full year organic volumes in Russia were 7% down, reflecting the de-stocking of wholesaler inventories in the second and third quarters, but level in the fourth quarter. In the Czech Republic, full year domestic volumes declined by 4% in a market affected by consumer down-trading.
MillerCoors U.S. domestic sales to retailers ("STRs") for the nine months to 31 March 2009 were down 0.4% against the prior year on a pro-forma basis with 0.4% growth in the quarter to March (after adjusting for one less trading day in the quarter). Net pricing growth remained strong while early progress with integration helped to accelerate the realisation of synergies. Premium light brand volumes were up marginally in the quarter with Coors Light STRs up low single digits while Miller Lite STRs were down mid single digits. The continued acceleration of Miller Genuine Draft 64 led to volume growth in the Miller Genuine Draft franchise in the quarter for the first time in a decade. Blue Moon and Peroni Nastro Azzurro also continued to perform well. Miller High Life growth accelerated and Keystone Light performed strongly.
Africa and Asia delivered organic growth of 4% in lager volumes for the year. In Africa, lager volumes grew by 5% despite a fourth quarter in which the global economic slowdown began to take effect in most key markets. Soft drinks volumes for the region grew 13% for the year on an organic basis while traditional beer volumes grew more than 25% on the same basis. Tanzania lager volumes grew 4% in the year, although fourth quarter volumes were affected by weaker consumer demand, whilst Botswana has been affected by the introduction of a 30% social tax levy on alcohol with effect from 1 November 2008. Angola and Uganda have grown well and Zambia has benefited from lower pricing following an excise reduction. Castel volumes grew robustly led by strong performances in Angola and Cameroon. In China, CR Snow delivered a solid performance for the year with organic lager volume growth of 4%, in addition to robust price increases. China achieved double digit growth in the fourth quarter, with very strong growth in the important western and central regions. India volumes grew 5% in the year with a stronger fourth quarter. Growth in Australia was in excess of 60% led by strong performances of Peroni Nastro Azzurro and Miller Chill.
In South Africa, full year lager volumes were down 2% on the prior year, with a weakening trend in the last quarter. Soft drinks volumes grew 4% for the year. Growth in the fourth quarter was adversely affected by Easter timing, deteriorating economic conditions and regulatory constraints on beer sales imposed in the Western Cape from January.
Ends
About SABMiller plc
SABMiller plc is one of the world's largest brewers with brewing interests and distribution agreements across six continents. The group's wide portfolio of brands includes premium international beers such as Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as market-leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller is also one of the largest bottlers of Coca-Cola products in the world.
In the year ended 31 March 2008, the group reported US$3,639 million adjusted pre-tax profit and revenue of US$21,410 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 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 Relations |
Tel: +44 20 7659 0174 |
|
Nigel Fairbrass |
Head of Media Relations |
Tel: +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 document 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.
Related Shares:
SAB.L