15th Oct 2007 07:00
SABMiller PLC15 October 2007 15 October 2007 SABMiller plc Trading Update SABMiller plc today provided an update regarding trading during the six-monthperiod to 30 September 2007, which is the first half of its financial year. Thecalculation of the organic growth rates included below excludes volumes foracquired businesses for the first 12 months after an acquisition. As communicated on 24 September 2007 SABMiller has continued its strong start tothe year, with organic growth in lager volumes of 11% for the six months ended30 September 2007. The growth in revenue has been partially offset by higherinput costs and increased investment across the business whilst financialperformance for the six months remains in line with management's expectations. In Latin America, lager volumes rose by 8%. Whilst South America has enjoyed aperiod of high volume growth during the initial implementation of the group'splans, this growth has moderated in recent months as expected. In Colombia,lager volumes have grown more than 7% in the half year. Slower growth wasrecorded in the latter part of the period, off a high base in the prior year.The Colombia operation continues with the major restructuring of its route tomarket network and the phased relaunch of the market leading Aguila brand. InPeru, volumes are up 10% in a market which remains highly competitive. Thebusiness continues its significant investments across the region in route tomarket, brand building and merchandising which are expected to constrain marginsin the short term. Europe achieved organic growth in lager volumes of 12%. Sales in the first twomonths of the half year were particularly strong, assisted by warm weather, butvolumes moderated somewhat in the later months. Poland achieved growth of 13%across its portfolio, notwithstanding challenging comparatives. Volumes inRussia were up by 18% with all brands contributing to this growth. Romania grewby 37%, boosted by the increased capacity introduced in the prior year anddriven by the ongoing success of the Timisoreana brand and its new PETpackaging. In the Czech Republic good volume growth of 3% was achieved. In North America, Miller's domestic sales to retailers (STRs) increased by 5.9%over the prior year, and were up 1.4% on an organic basis (excluding Sparks andSteel Reserve, acquired in August 2006), with Miller Lite STRs up by 2.1%.Miller's strategy to grow Miller Lite and to migrate its brand portfolio tohigher margin segments has contributed to an increase of 3.9% in domestic netrevenue per barrel. Miller Chill, the company's new 'chelada style' light beer,continues to trade above expectations whilst volumes of the group'sinternational worthmore brand Peroni Nastro Azzurro and craft beer Leinenkugel'sare up by strong double digit percentages. SABMiller's Africa & Asia operations have again grown rapidly and achievedorganic growth of some 20% in lager volumes, driven by China where volumes haveincreased by 22%. In Africa (excluding Zimbabwe), lager volumes grew by 6% on anorganic basis, with 11% volume growth in Botswana after two difficult years andvery good performances achieved in Tanzania and Mozambique. In South Africa, our lager volumes were up 2% with stronger growth in themainstream segment and following the successful launch of our premium brand,Hanza Marzen Gold, in early May. Recently volume performance has been somewhatconstrained due to a combination of local supply shortages and reducedflexibility during new brand and pack introductions including the implementationof our mainstream renovation programme. Soft drink volumes grew by 9% reflectingfavourable weather conditions and trade restocking in earlier months followingsome supply shortages at the end of the prior year. 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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