12 October 2006
12 October 2006
SABMiller plc Trading Update
SABMiller plc today provided an update regarding trading during the six-month
period to 30 September 2006, which is the first half of its current financial
year. The calculation of the group's organic growth rate excludes volumes for
South 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 the
period, whilst financial performance was in line with management's expectations.
In South America, favourable trading conditions continued with all countries
delivering strong performances, resulting in 11% growth overall in lager volumes
for the first half, on a pro forma basis. In Peru, competitor activity at lower
prices has stimulated sales volumes. Our integration activities in the region
are proceeding well, and we have commenced a period of increased investment in
the market place as evidenced by the recent launches in the premium segment of
Peroni Nastro Azzurro in Colombia and Barena in Peru. In Central America, both
beer and soft drink volumes were up by some 6%, reflecting an improvement in
Europe continued to perform well with organic growth in lager volumes of 8%,
assisted by additional consumption during the World Cup. Poland continued to
achieve strong growth notwithstanding challenging comparatives, driven by our
principal Polish brands, Tyskie and Zubr, which are the top two brands in the
market. Russia recorded volume growth of over 20%, reflecting double digit gains
for Zolotaya Bochka, Kozel, Miller Genuine Draft and Redds. Romania also
reported double digit growth, driven by our Timisoreana brand. Both the Czech
Republic and Italy achieved marginal growth in volumes. Our new UK business
maintained its good momentum, and during the period Peroni Nastro Azzurro
volumes increased by over 25%.
In North America, Miller's US domestic sales to retailers (STRs) were down by
3.6% on an organic, comparable trading day basis. Volumes continued to be
affected by the 2005 competitive price reductions and market share gains by the
import and craft beer segments. Miller Lite brand volumes declined marginally on
an adjusted basis, whilst Miller's key economy brand volumes declined by
mid-single digit levels. In the worthmore sector, Miller achieved encouraging
volume growth resulting from innovation in the Leinenkugel's range and expanded
distribution for our newly launched Peroni Nastro Azzurro brand.
Our Africa and Asia business delivered organic growth of over 20% in lager
volumes. China recorded organic growth in excess of 25%, with all regions
contributing to this good performance. During this six month period, CRSnow
became China's largest brewer and its national brand Snow, the country's largest
beer brand, achieved strong growth. In Africa (excluding Zimbabwe) lager volumes
grew by 6%, with volumes in Tanzania advancing in mid-single digits. Strong
gains were achieved in Mozambique and Uganda, outweighing the volume decline in
Botswana resulting from the prior years' local currency devaluations.
In South Africa, lager volumes were ahead by almost 1% following strong growth
in the prior year. Sales mix improved as a result of good growth in our
portfolio of premium brands. Soft drink volumes increased by some 1%, following
growth of 10% in the comparable prior year period during which weather
conditions were particularly favourable.'
Notes to editors:
SABMiller plc is one of the world's largest brewers with brewing interests or
distribution agreements in over 60 countries across five continents. The group's
brands include premium international beers such as Miller Genuine Draft, Peroni
Nastro Azzurro and Pilsner Urquell, as well as an exceptional range of market
leading local brands. Outside the USA, SABMiller plc is also one of the largest
bottlers of Coca-Cola products in the world.
In the year ended 31 March 2006, the group reported US$15,307 million in revenue
and profit before tax of $2,453 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.vismedia.co.uk
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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
Nigel Fairbrass Head of Media Relations Tel: +44 7799 894265
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