17th Jan 2007 07:01
SABMiller PLC17 January 2007 17 January 2007 SABMiller plc Trading Update Following the summer peak season in its southern hemisphere operations,SABMiller plc today issues its trading update for the group's third quarter andfor the nine months ended 31 December 2006. The calculation of the group'sorganic growth rates includes volumes for Bavaria SA from 12 October 2006, 12months after it became part of the group. The group's organic lager volume growth for the third quarter was some 10%,marginally ahead of growth for the year to date of 9.5%. South Africa Beverages achieved an increase in lager volumes of almost 1% duringthe quarter, in line with year to date volume growth. Lager volumes wereconstrained by stock shortages resulting from temporary disruptions to both rawmaterial and glass supplies, in addition to disruptions in the national railtransport network. Underlying economic performance and consumer confidence inSouth Africa remain positive, contributing to continuing mix improvements,albeit at a moderating pace. Soft drinks volumes declined by 3% in the quarterreflecting the national shortage of carbon dioxide, and year to date soft drinkvolumes are now slightly down on the prior year. On a pro forma basis, South America lager volumes for the three months to 31December 2006 were some 12% above the prior year and up 11% year to date. Thisperformance reflects continuing growth across the region with robust growth inPeru, where market conditions remain competitive. In Colombia, the launch ofPeroni Nastro Azzurro and the relaunch of Club Colombia have been successful andthe regional volume performance also reflects a range of initiatives includingthe packaging changes to Cristal in Peru. In Central America, carbonated softdrink volumes (CSDs) were up 6% for the quarter and year to date, with growthbeing achieved in both countries, whilst lager volumes were 9% higher in thequarter, with year to date growth of 7%. In Europe, lager volume grew some 13% during the quarter on an organic basis,with year to date growth of over 9%. This has been driven by continuing goodperformances from Poland, Russia and Romania, influenced by an exceptionallymild winter. Worthmore volumes grew by 13% in the quarter, consistent with yearto date growth. Miller's third quarter domestic sales to retailers (STRs) were 4.3% above theprior year and 0.9% below prior year on an organic basis excluding Sparks andSteel Reserve. Following management initiatives, STRs of flagship brand MillerLite have grown by 1.5% in the quarter. STR performance for Miller, andparticularly Miller Lite, was stronger in December. Miller's shipments towholesalers for the quarter grew less than STRs as distributor inventoriesreduced. For the year to date, Miller's organic domestic STRs declined 2.8%after adjusting for the number of trading days in the period (3.3% unadjusted).Whilst Miller's December STR performance has been encouraging, supported byincreased marketing and sales programmes, price recovery and raw material costswere more adverse in the quarter than expected. Our Africa and Asia business delivered organic growth of 30% in lager volumes inthe quarter and 25% year to date, reflecting particularly strong growth in Chinaof over 30% in the quarter. In Africa (excluding Zimbabwe) lager volumes grew by10% in the quarter and 7% year to date, with volumes in Tanzania advancing 10%in the quarter. Strong gains were also achieved in Mozambique and Uganda, whilsta marginal decline in lager volume was recorded in Botswana in the quarter. CSDgrowth (excluding Zimbabwe) was 17% in the quarter and 21% year to date, whichwas led by continuing strong growth in Angola. The group's financial performance has been in line with our expectationsoutlined at the time of the interim results announcement, despite the headwindsexperienced at Miller and in South Africa, and the comparatively weaker SouthAfrican rand/US dollar exchange rate prevailing in the quarter. 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.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 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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