16 April 2008
16 April 2008
SABMiller plc Trading Update
SABMiller plc today issues the following update on trading for the 12 months to
31 March 2008. The calculation of organic growth rates shown below excludes
volumes for acquired businesses for the first 12 months after an acquisition.
The group's lager volume growth was 11% for the year with organic growth of 7%.
Revenue grew by some 16%, benefiting from price increases and mix improvements,
which have offset the impact of higher input costs. The underlying performance
of the group has been good and was at the upper end of management's
expectations. The results have benefited from successful revenue management and
enhanced productivity as well as favourable exchange rates in some of our major
In Latin America, lager volumes were up 5% for the year, with a subdued growth
rate in the final quarter following mid-teen growth in the comparative period.
In Colombia, full year volumes have grown 4%, reflecting slower trading
conditions in the second half and tough comparatives, but good price and mix
increases have been achieved and our market facing initiatives continue to
deliver benefits. In Peru, volumes ended up 8% in a market that remains highly
Europe recorded full year organic growth of 8%. The final quarter showed
satisfactory growth despite a particularly strong comparative period which had
benefited from good weather. Pricing and mix improvements boosted revenue.
Growth remained strong in Romania and the year ended with volumes up 28%, driven
by the Timisoreana brand's new PET packaging. Good organic domestic volume
growth of 10% was achieved in Poland, reflecting continued strong growth of Lech
and Zubr, while in Russia our portfolio of premium brands grew by 14%. Domestic
volumes in the Czech Republic ended the year marginally above the prior year.
In North America, Miller's full year domestic sales to retailers (STRs) grew by
3.1% after adjusting for the extra trading day in the current year (3.5%
unadjusted) and were up 0.7% on an organic adjusted basis. Trading-day adjusted
STRs of Miller Lite were up 1.1% for the full year (1.5% unadjusted). On a
similar basis, annual STRs of the worthmore brand portfolio, including Sparks,
grew 49% - and now represent 5.8% of the total portfolio - driven by the
successful national launch of Miller Chill and the strong double digit growth of
Peroni Nastro Azzurro and Leinenkugel's. Miller's domestic net revenue per
barrel increased by 4.0% for the full year, reflecting good pricing, reductions
in promotions and favourable brand mix.
Africa and Asia delivered organic growth of 15% in lager volumes for the year.
In China, CR Snow further increased its market leadership with rapid expansion
of the Snow brand. Organic growth in China was subdued in the final quarter
following severe weather conditions, growth of over 30% in the comparative
quarter and significant price increases. In India organic volumes grew by almost
20% for the year. In Africa (excluding Zimbabwe) on an organic basis lager
volumes grew strongly, having accelerated in the final quarter, and ended the
year up 6%. Strong volume growth was recorded in Botswana, following renovation
of the St Louis brand and the introduction of new returnable bottles, and good
volume growth was also achieved in Tanzania and Mozambique.
South Africa Beverages' full year lager volumes were level with the prior year,
although down during the final quarter (over a strong comparative quarter). This
is a satisfactory full year performance in view of the expected volume loss
following the termination of a licensed premium brand with which we now compete.
Soft drinks volumes grew by 4% for the year, impacted in the final quarter by
carbon dioxide shortages and cycling growth of over 30% in the comparable
About SABMiller plc
SABMiller plc is one of the world's largest brewers with brewing interests or
distribution agreements in over 60 countries across six 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 2007, the group reported US$3,154 million adjusted
pre-tax profit and revenue of US$18,620 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.sabmiller.com or www.newscast.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 0174
Nigel Fairbrass Head of Media Relations Tel: +44 7799 894265
This announcement does not constitute an offer to sell or issue or the
solicitation of an offer to buy or acquire securities of SABMiller plc (the
'Company') or any of its affiliates in any jurisdiction or an inducement to
enter into investment activity.
This document includes 'forward-looking statements'. These statements may
contain the words 'anticipate', 'believe', 'intend', 'estimate', 'expect' and
words of similar meaning. All statements other than statements of historical
facts included in this announcement, including, without limitation, those
regarding the Company's financial position, business strategy, plans and
objectives of management for future operations (including development plans and
objectives relating to the Company's products and services) are forward-looking
statements. 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 from
future results, performance or achievements expressed or implied by such
forward-looking statements. These forward-looking statements are based on
numerous assumptions regarding the Company's present and future business
strategies 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 any
updates or revisions to any forward-looking statements contained in this
announcement to reflect any change in the Company's expectations with regard
thereto or any change in events, conditions or circumstances on which any such
statement is based. Any information contained in this announcement on the price
at which the Company's securities have been bought or sold in the past, or on
the yield on such securities, should not be relied upon as a guide to future
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