12th Oct 2006 07:00
SABMiller PLC12 October 2006 12 October 2006 SABMiller plc Trading Update SABMiller plc today provided an update regarding trading during the six-monthperiod to 30 September 2006, which is the first half of its current financialyear. The calculation of the group's organic growth rate excludes volumes forSouth America which became part of the group in October 2005. "The group's lager sales volumes grew by some 9% on an organic basis in theperiod, whilst financial performance was in line with management's expectations. In South America, favourable trading conditions continued with all countriesdelivering strong performances, resulting in 11% growth overall in lager volumesfor the first half, on a pro forma basis. In Peru, competitor activity at lowerprices has stimulated sales volumes. Our integration activities in the regionare proceeding well, and we have commenced a period of increased investment inthe market place as evidenced by the recent launches in the premium segment ofPeroni Nastro Azzurro in Colombia and Barena in Peru. In Central America, bothbeer and soft drink volumes were up by some 6%, reflecting an improvement intrading conditions. Europe continued to perform well with organic growth in lager volumes of 8%,assisted by additional consumption during the World Cup. Poland continued toachieve strong growth notwithstanding challenging comparatives, driven by ourprincipal Polish brands, Tyskie and Zubr, which are the top two brands in themarket. Russia recorded volume growth of over 20%, reflecting double digit gainsfor Zolotaya Bochka, Kozel, Miller Genuine Draft and Redds. Romania alsoreported double digit growth, driven by our Timisoreana brand. Both the CzechRepublic and Italy achieved marginal growth in volumes. Our new UK businessmaintained its good momentum, and during the period Peroni Nastro Azzurrovolumes increased by over 25%. In North America, Miller's US domestic sales to retailers (STRs) were down by3.6% on an organic, comparable trading day basis. Volumes continued to beaffected by the 2005 competitive price reductions and market share gains by theimport and craft beer segments. Miller Lite brand volumes declined marginally onan adjusted basis, whilst Miller's key economy brand volumes declined bymid-single digit levels. In the worthmore sector, Miller achieved encouragingvolume growth resulting from innovation in the Leinenkugel's range and expandeddistribution for our newly launched Peroni Nastro Azzurro brand. Our Africa and Asia business delivered organic growth of over 20% in lagervolumes. China recorded organic growth in excess of 25%, with all regionscontributing to this good performance. During this six month period, CRSnowbecame China's largest brewer and its national brand Snow, the country's largestbeer brand, achieved strong growth. In Africa (excluding Zimbabwe) lager volumesgrew by 6%, with volumes in Tanzania advancing in mid-single digits. Stronggains were achieved in Mozambique and Uganda, outweighing the volume decline inBotswana resulting from the prior years' local currency devaluations. In South Africa, lager volumes were ahead by almost 1% following strong growthin the prior year. Sales mix improved as a result of good growth in ourportfolio of premium brands. Soft drink volumes increased by some 1%, followinggrowth of 10% in the comparable prior year period during which weatherconditions were particularly favourable." Ends Notes to editors: SABMiller plc is one of the world's largest brewers with brewing interests ordistribution agreements in over 60 countries across five 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 2006, the group reported US$15,307 million in revenueand profit before tax of $2,453 million. SABMiller plc is listed on the Londonand 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.vismedia.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 894265 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 price at which theCompany's securities have been bought or sold in the past, or on the yield onsuch 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 ExchangeRelated Shares:
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