12th Apr 2007 07:01
SABMiller PLC12 April 2007 12 April 2007 SABMiller plc Trading Update SABMiller plc today issued the following update on trading for the 12 months to31 March 2007. The calculation of the group's organic growth includes volumesfor South America from 12 October 2006, 12 months after it became part of thegroup. For the year to 31 March 2007, the group recorded 23% growth in lager volumes,with strong organic growth of some 10%. Group financial performance was in linewith management's expectations as good revenue growth was partially offset byhigher input costs and increased investment across the business. On a pro forma basis, South America lager volumes for the year rose by 12% withgrowth accelerating in the final quarter to 14%. Strong performances across theregion reflect good economic conditions, improved market shares and the impactof initiatives to rejuvenate the beer category. These initiatives include brandrenovations and launches, the introduction of new containers and significantlyincreased investment in marketing and merchandising at the point of sale. InColombia, improved retail price discipline has underpinned accelerating sales.In Peru, Cristal was relaunched in December 2006 and has led our share gains ina market that remains competitive. In Central America, carbonated soft drink(CSD) volumes were up 6% and lager volumes up 8% on an organic basis for theyear. In Europe, lager volumes for the year grew by 11% on an organic basis with thefinal quarter up by 15%. This has been driven by continuing good performancesfrom Poland, Russia and Romania, influenced by a mild winter, and has resultedin market share gains in most countries. Poland has achieved strong growth of13% notwithstanding challenging comparatives, reflecting particularly strongmarket execution and good growth of our Zubr brand. Russia recorded volumegrowth of 24% across our portfolio of premium brands, assisted by improvednational distribution. Romania reported growth of 23%, driven by our Timisoreanabrand and its successful introduction into PET packaging. Czech Republicachieved growth in volumes of 1%, led by our Pilsner Urquell and Kozel brands.Branded volumes in Italy were up 5% within our total domestic volume increase of2%, reflecting our managed exit from private label volumes. In North America, Miller's full-year domestic sales to retailers ("STRs") werelevel with the prior year and down some 3% on an organic basis (excluding Sparksand Steel Reserve), in line with Miller's shipments to wholesalers over the sameperiod. In the fourth quarter, Miller's STRs declined by 2.3% on an organicbasis. For the full year, Miller Lite STRs declined 1%, and STRs of Miller'sworthmore portfolio, including Sparks, grew by 21% with acceleration in thefourth quarter. While pricing improved, profitability was impacted bysignificantly higher raw material and packaging costs. Our Africa and Asia business delivered organic growth of 27% in lager volumesfor the year, reflecting particularly strong lager volume growth in China of 30%driven by our national brand, Snow. In Africa (excluding Zimbabwe), lagervolumes grew by 7% for the full year, with Tanzania advancing 8%, helped by thelaunch of new packaging for Castle, and Mozambique up 10%, benefiting from widerdistribution and a strong economy. Lager volumes declined a further 4% inBotswana which experienced difficult economic conditions. CSD growth in Africa(excluding Zimbabwe) was 23%, led by strong growth in Angola. In India, volumesincreased by 36% on a pro forma basis, benefiting from market deregulation incertain states. Our joint ventures in Vietnam and Australia commenced operationsin the fourth quarter of the financial year. In South Africa, lager volumes for the year increased by 2%, with fourth quartergrowth in volumes of 8% benefiting from particularly favourable weatherconditions. As noted in our statement of 13 March, SA Beverages is no longerbrewing, marketing or distributing the Amstel brand in South Africa, but thishas not had an impact in the current year. Soft drinks volumes grew by 7% forthe full year, benefiting from an increase in volumes of 33% in the finalquarter following an improvement in the supply of carbon dioxide to our plants. Ends Notes to editors: 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 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.newscast.co.uk or via the News and Media section at:www.sabmiller.com 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 0174 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 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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