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  Print      Mail a friend       Annual reports

Thursday 09 November, 2006


Interim Results

09 November 2006

                  Delivering growth from our global footprint

London and Johannesburg, 9 November 2006. SABMiller plc today announces its
interim (unaudited) results for the six months ended 30 September 2006.
Highlights are:

                                         Sept      Sept               March
                                         2006      2005         %      2006
                                         US$m      US$m    change      US$m
Revenue (a)                             9,344     7,051        33%   15,307

EBITA (b)                               1,781     1,264        41%    2,941

Adjusted profit before tax (c)          1,533     1,192        29%    2,626

Profit before tax                       1,378     1,126        22%    2,453

Adjusted earnings (d)                     846       667        27%    1,497

Adjusted earnings per share (d)
- US cents                               56.6      52.7         7%    109.1
- UK pence                               30.5      28.9         6%     61.0
- SA cents                              385.2     340.5        13%    699.2

Basic earnings per share (US cents)      52.9      51.3         3%    105.0

Interim dividend per share (US cents)    14.0      13.0         8%

Net cash generated from operations      2,152     1,289        67%    3,291

  • Group lager volumes up 29% to 117 million hectolitres (hl), organic
    growth of 9%

  • South American volumes exceeding expectations
  • Continued strong volume and earnings growth in Europe

  • Performance in North America reflects challenging trading conditions

  • Excellent volume growth in China and India

  • South Africa earnings driven by premium segment growth

  • Interim dividend increase of 8%, supported by strong cash flows

(a)  Revenue excludes the attributable share of associates' revenue of US$1,052 
     million (2005: US$850 million).
(b)  Note 2 provides a reconciliation of operating profit to EBITA which is
     defined as operating profit before exceptional items and amortisation of
     intangible assets (excluding software) but includes the group's share of
     associates' operating profit, on a similar basis. EBITA is used throughout 
     the interim announcement.
(c)  Adjusted profit before tax comprises EBITA less net finance costs of US$242 
     million (2005: US$77 million) and share of associates' net finance costs
     of US$6 million (2005: US$8 million) adjusted in 2005 for the early 
     redemption penalty in respect of the private placement notes (US$13 
(d)  A reconciliation of adjusted earnings to the statutory measure of profit
     attributable to equity shareholders is provided in note 5.

                                        2006       Reported  Organic, constant
                                       EBITA         growth           currency
                                        US$m              %             growth

Europe                                   485             28                 21
North America                            253            (12)               (12)
Africa and Asia                          240             14                 14
South Africa: Beverages                  411             10                 15
South Africa: Hotels and Gaming           44             16                 22
Corporate                                (39)             -                  -
Sub-total                              1,394             13                 13
Latin America (1)                        387            n/a                n/a
Group                                  1,781             41                 13

(1) No metrics have been given for Latin America as the inclusion of South
America has materially changed the composition of this segment such that growth
statistics are not meaningful.

Statement from Graham Mackay, chief executive

'This good start to the year is a further demonstration of the advantage we
enjoy in our access to growth markets and our ability to offer our customers and
consumers comprehensive and varied portfolios of unique beer brands.

'The combination of strong volume growth together with good earnings
contributions from around the group supports our confidence for the future.'

                   SABMiller plc                                         Tel: +44 20 7659 0100

Sue Clark          Director of Corporate Affairs                         Mob: +44 7850 285471

Gary Leibowitz     Senior Vice President, Investor Relations             Mob: +44 7717 428540

Nigel Fairbrass    Head of Media Relations                               Mob: +44 7799 894265

  A live webcast of the management presentation to analysts will begin at 9.30am (GMT) on 9 November
This announcement, a copy of the slide presentation and video interviews with management are available
                                           on the SABMiller
       plc website at . Video interviews with management can also be found at

     High resolution images are available for the media to view and download free of charge from

   Copies of the press release and the detailed Interim Announcement are available from the Company
          at the Registered Office, or from 2 Jan Smuts Avenue, Johannesburg, South Africa.

           Registered office: SABMiller House, Church Street West, Woking, Surrey, GU21 6HS
                   Incorporated in England and Wales (Registration Number 3528416)
                                      Telephone: +44 1483 264000
                                       Telefax: +44 1483 264117


Business review

The group has delivered satisfactory growth for the half year on top of the
strong performance in the comparable period last year. Our portfolio of
developing and developed market businesses, using the strength of our local,
regional and international brands, drove organic growth in overall lager volumes
of 9% and in EBITA of 13% on a constant currency basis. The group EBITA margin
increased to 17.1%, a 110 basis points improvement over the prior period.

Overall, these results continue to demonstrate the group's growth profile and
the advantages of our global footprint. Total beverage volumes were up 9% on an
organic basis, and 30% above last year on a reported basis at 144 million
hectolitres (hl) which includes the first full contribution from our business in
South America. Total lager volumes were 117 million hl. We saw particularly
strong lager volume growth in Europe, with market share gains in a number of
countries buoyed by the World Cup, and in China where our associate, CR Snow,
became the country's largest brewer by sales volume in the first half of
calendar 2006, and its national brand 'Snow' moved into the top ten beer brands
by volume worldwide. In North America Miller Brewing Company has continued to be
impacted by competitive pricing conditions and significant increases in
commodity and energy prices. In South America our integration activities are
proceeding well with volume growth across the four countries running ahead of
our initial expectations and we are accelerating our capital investment
programme. The current growth rates in South America give us further confidence
in the long term potential of this business.

The strong volume growth, further enhanced by price and mix benefits, has
resulted in a good increase in EBITA. In Europe we enjoyed mix gains across much
of the division; from Africa & Asia, we saw price improvements in both Angola
and Mozambique, and from South Africa we continued to benefit from the consumer
shift to premium products.

Reported EBITA of US$1,781 million, up 41%, includes the first full half year
contribution from South America. Weighted average currency rates as a whole were
largely stable in the six month period. On an organic, constant currency basis,
EBITA increased by 13% reflecting strong operating performances including
improved pricing and mix, in most of our key markets. Adjusted earnings are up
by 27%, to US$846 million, whilst adjusted earnings per share of 56.6 US cents
have grown by 7% for the first six months on a reported basis, reflecting the
increased number of shares in issue following the transaction in South America
during 2005. An interim dividend of 14.0 US cents per share, an 8% increase,
will be paid to shareholders on 22 December 2006.

We continue to make progress against our four strategic priorities.

Creating a business portfolio for growth

Over the period we continued to expand and develop our global footprint to
ensure access to markets that will deliver a combination of volume growth and
future value. In July, our Chinese associate CR Snow acquired two further
breweries in the Zhejiang and Anhui provinces, extending our influence into the
major Chinese cities of Shanghai, Hangzhou and Ningbo. In August, we announced
the creation of a joint venture with Coca-Cola Amatil in Australia, to market
and distribute directly our international premium brands which have a small, but
growing presence there.

Investing in strong local, regional and international brands

We have more beer brands in the world's top 50 than any other brewer. Our
ability to create and manage comprehensive brand portfolios in each local market
gives our group a unique competitive advantage. During the period we acquired
the McKenzie River Corporation's Sparks and Steel Reserve brands in the US and
simultaneously agreed a deal with McKenzie River that will give Miller Brewing
Company access to McKenzie River's future brand innovation programme. In August
we announced the acquisition of the Foster's brand and brewery in India. In
South America, our plans to create differentiated positions for all our brands
and to upgrade packaging are well advanced, and in the next six to eighteen
months we will establish new price frameworks and upgrade sales efforts across
the board.

Driving local performance

We continued to drive superior performance from our existing businesses over the
period with notable volume and mix benefits. In Poland, volumes were up 11%
substantially ahead of the market and in the last twelve months we have added a
further 1% of market share to 38%. In Russia, volumes of our premium brand
portfolio were ahead 25%, almost twice the market growth rate, and our largest
brand, Zolotaya Bochka was up 43%. In Mozambique and Tanzania, we have extended
our market penetration into rural areas whilst simultaneously driving mix and
volume improvements. Our Italian business, Birra Peroni, grew its core brands,
Peroni and Nastro Azzurro by 4% and 9% respectively over the period.

Benefits from global scale

Our ability to source and develop talent at a global level is becoming a key
competitive advantage for the group. The SABMiller processes and techniques are
being embedded in South America and we are starting to see the benefits in
improved performance.

From the beginning of the next calendar year, Miller will begin importing into
the US three of our South American brands, namely Cristal, Aguila and Cusquena,
which will be targeted at the expanding South American communities. Peroni
Nastro Azzurro which grew volumes over the period by 28% in the UK, and 23% in
the US, was introduced into Poland in April and into Colombia in September.


The group delivered satisfactory growth in the half year, enhanced by our new
businesses in South America. Our global footprint; our brands and our brand
portfolios; and our ability to continue to leverage our global scale and to
improve productivity, give us confidence that we will continue to make progress.

Operational review

Latin America
                    Central America       Organic          South Latin America
                               Sept        growth        America          Sept 
                               2005        2006**           2006          2006
Financial summary              US$m          US$m           US$m          US$m

Group revenue (including
share of associates)            262            32          1,718         2,012
EBITA*                           32             9            346           387
EBITA margin (%)               12.2                         20.1          19.2

Sales volumes (hl 000)
- Lager                         826            49         15,585        16,460
- Carbonated soft drinks
  (CSDs)                      2,991           195          1,274         4,460
- Other
  beverages                   1,451           139          3,680         5,270

* In 2006 before exceptional items of US$24 million being integration and
restructuring costs in South America.

** Organic growth in the period represents the organic growth for Central
America only. There is no currency impact on reported growth in the period under

The Latin America segment includes the results of our operations in Central
America, as well as those in South America. The completion date for the
transaction was 12 October 2005. Accordingly the results for the current half
year include a full six months for South America, but the comparative period
does not and volume growth is discussed below on a pro-forma basis.

The first half of the financial year in South America saw strong trading
performances in all countries, with total volumes up 11% (lager volumes up 11%)
against the prior year. The timing of Easter and brand promotional campaigns
capitalising on the World Cup assisted volumes during the first quarter, despite
there being a number of 'dry days' in various countries for electoral reasons as
well as floods in the greater Bogota area.

Lager volumes in Colombia increased by 9%, despite the cycling of double digit
growth in the prior year and an unusual number of 'dry days' where for electoral
reasons alcohol sales are banned. Total volumes grew by 10%, aided by economic
growth of over 5%, as well as World Cup related marketing initiatives and an
upgrade in point of sale activity. Aguila, our flagship brand and the leading
brand in Colombia, recorded growth of 10%. In September we launched Peroni
Nastro Azzurro - our first international brand to be brought to the region. The
coming 18 months will see further development of the brand portfolio, with the
renovation of six domestic brands, including the upgrade of both packaging and
brand presentation, and the launch of further international and regional brands.

The strong volume growth has accelerated the need for additional capacity,
especially in the western parts of Colombia. Accordingly, work has commenced on
the construction of a new brewery on the outskirts of Cali, Colombia's third
largest city, which should come on stream in late 2007.

During June, the company announced the disposal of its fruit juice business,
Productora de Jugos, for a cash consideration of approximately US$55 million.
Completion of the sale is still subject to satisfaction of a number of
conditions, principally the approval of the Colombian Superintendence of
Industry and Commerce in accordance with Colombian merger control regulations.

SABMiller has made a series of offers to purchase the remaining shares of
minority shareholders of Bavaria since obtaining control in October 2005 and the
group shareholding in Bavaria is now 98% with an effective interest of 97.65%.

Lager volumes in Peru grew by 13% during the period driven by favourable
economic conditions. GDP growth was 7.25% for the calendar year to 31 August
2006. Volumes have also been stimulated by competitive pricing in the market.

During the first half our market share has remained stable at some 92% despite
the competitor expansion of distribution nationwide.  Good volume growth was
recorded in all regions and particularly in the South where the distribution of
our main brand, Cristal, was extended during June. This, together with Cristal's
World Cup promotions in the country, has contributed to volume growth of over
30% for the brand.

Barena was launched in September, the first in a planned series of new brand
introductions and renovations. We are accelerating investment for additional
capacity and plans for our container upgrade programme are well advanced.

During the period under review, SABMiller acquired additional shares in Backus
and Johnston, thereby increasing its effective interest to 93.7%.

Our Ecuador operations performed strongly, with volume growth of over 16%,
driven by the flagship mainstream brand Pilsener, which capitalised on the
brand's association with the World Cup. The brand was recently relaunched with
enhanced graphics and labelling.

In Panama the beer market grew by 5.6%, fuelled by strong GDP growth, with
Cerveceria Nacional increasing its market share to 84%. Brands Atlas and Balboa
have performed well, contributing to total volume growth of 7%. The price on the
285 ml main returnable bottle was increased by 16% in July.

We are entering a period of heightened investment in all our major markets as
evidenced by the recent launches in the premium segment of Peroni Nastro Azzurro
in Colombia, Barena in Peru and Miller Genuine Draft in Panama and packaging
upgrades for domestic brands. Furthermore exceptional costs of US$24 million
have been recorded for integration and restructuring costs in the first half,
with the majority of this related to brand portfolio designs and the container
upgrade programme.

In Central America, both El Salvador and Honduras delivered good volume
performances across the range of products. Lager volumes grew by 6% and
carbonated soft drink (CSD) volumes improved by 7%. This, with some selected
price increases, resulted in organic constant currency EBITA growth of 27%.

                                            Sept            Sept
                                            2006            2005
Financial summary                           US$m            US$m             %

Revenue                                    2,279           1,905            20

EBITA                                        485             379            28

EBITA margin (%)                            21.3            19.9

Sales volumes (hl 000)
- Lager                                   23,040          20,910            10
- Lager organic                           22,757          20,910             9

Europe again delivered an excellent result with EBITA up 28% (21% in organic
constant currency terms). Total volumes were up 10% (9% organic growth) with
strong growth in Poland, Russia, Romania and the UK. Premium (worthmore) volumes
increased by 13% on an organic basis, assisting revenue per hectolitre to
improve. EBITA margin expanded by 140 basis points to 21.3%.

In Poland volumes were up 11% compared to market growth of 7% and our market
share has improved by a further 1% over the last twelve months to 38%. Our
Tyskie brand, the market leader, returned to growth - up 6%, leveraging its
association with the national football team during the World Cup. Our Lech brand
grew 7% with new variants making good contributions. In the economy segment the
Zubr brand continued its strong performance growing by 23%, and Redds, our
flavoured alcoholic beverage, was up 35%. These encouraging trends have also
been stimulated by new multipacks in the off-premise trade, and consumer
activation programmes in the on-premise trade. In both channels, we have focused
on product visibility and availability of chilled product, employing enhanced
point of sale equipment.

In the Czech Republic, the total beer market grew 1% assisted by World Cup
activity, while our volumes were up almost 1%. In line with our strategy to
build value share in this market, worthmore volumes were up 3% and Pilsner
Urquell grew by 4%, following the introduction in the on-premise of new draft
formats. In the off-premise trade, Gambrinus performed well supported by new
packaging, including crates, and the introduction of multipacks. Exports to our
key market, Germany, were up 37% benefitting from new packaging and an
upweighting of the field sales force. Kozel, now produced in three countries,
grew by 8% domestically and over 20% regionally.

In Russia, industry volumes were up 13%, temporarily boosted by disruption to
wine and spirit supplies due to new excise labelling requirements. Our volumes
grew 25%, assisted by significant marketing investment. Miller Genuine Draft
volumes increased by 14% following the launch of a new half litre bottle and a
related marketing campaign. Zolotaya Bochka, our biggest volume brand, performed
strongly - up 43%, while Redds, Kozel and Pilsner Urquell all achieved good
growth. Our increased sales force, extended cooler programmes and focused trade
marketing efforts have all contributed to improved profitability.

In Italy the industry grew 2%, notwithstanding the 19% excise increase year on
year. Our core brands performed well with Peroni up 4% and Nastro Azzurro
growing 9%, while Pilsner Urquell was ahead by over 30%. Total Birra Peroni
volumes were level with the prior year's comparable period, despite a 27%
decline in private label volumes as a result of our managed exit strategy.
Exports showed strong growth with Peroni Nastro Azzurro volumes up 28% in the

In Romania, volume was up 13%, against industry growth of 17%. Our business,
Ursus Breweries, was capacity constrained during the first quarter but grew
volumes by 24% in the second quarter. Our Timisoreana brand grew 27% with the
launch of a new mainstream PET pack, and the Ciucas brand was up 22% in the
economy segment. The number of on-premise outlets selling our Peroni Nastro
Azzurro brand is being expanded and it has recently been launched in the
off-premise channel.

In Hungary, Dreher's volumes were up 4%, in line with the industry. Revenue per
hl was impacted negatively by the inability to pass on fully the 21% effective
increase in excise. Recent political instability and the introduction of fiscal
austerity measures will impact consumer purchasing power going forward.

In Slovakia, our organic volume growth was in line with industry volume growth
of 1%. In March 2006 we acquired 48% of Pivovar Topvar A.S., and have since
increased our shareholding to 92%.

North America
                                                   Sept         Sept
                                                   2006         2005
Financial summary                                  US$m         US$m         %
Revenue                                           2,632        2,651        (1)

EBITA                                               253          286       (12)

EBITA margin (%)                                    9.6         10.8

Sales volumes (hl 000)
- Lager - excluding contract brewing             24,693       25,558        (3)
        - contract brewing                        5,224        5,506        (5)
- Carbonated soft drinks (CSDs)                      49           42        17

Lager - domestic sales to retailers (STRs)       23,177       23,976        (3)

Miller Brewing Company continued to experience a difficult trading environment
due to competitive pricing conditions, market share gains by import and craft
beers, and significant increases in commodity input costs. Miller has however
sustained its marketing investment in major brands and continued to improve its
overall organisational capabilities with a specific focus on brand marketing and
main retailers.

As reported by the US Beer Institute, beer industry shipments to wholesalers
(STWs) grew by 1.4% for the period, but excluding imports, which were up 8.6%,
the US domestic industry grew by only 0.3%. Industry shipments to retailers
(STR) performance for the same period is believed to have lagged STW growth as
unfavourable weather in September resulted in increases in distributor

On an organic (excluding Sparks and Steel Reserve) comparable trading day basis,
Miller's US domestic STRs decreased by 3.6% over the six months while domestic
STWs declined by 3.8%. Including Sparks and Steel Reserve volumes, Miller's US
domestic STRs decreased 2.6% on a comparable trading day basis (3.4%
unadjusted), while actual reported domestic STWs declined 2.9%. Contract brewing
volumes were lower by 5%, due primarily to the transfer of the Sparks and Steel
Reserve volumes into the Miller system.

Miller Lite volumes recorded a low-single digit decline during the period.
Marketing for Miller Lite has been increased with further investment in retail
activation programmes. Miller High Life and Milwaukee's Best franchise volumes
both declined by mid-single digit levels due to particularly strong competitive
pricing pressure in the economy segment, whilst Icehouse volumes were level with
the prior period. Miller Genuine Draft volumes continued to decline.

Miller's worthmore brand portfolio grew volumes by 8% which was driven by growth
of the Leinenkugel's franchise, following the successful launch of the Sunset
Wheat variant, as well as continued rapid growth of Peroni Nastro Azzurro.

Total revenue declined by 1% compared with the prior period, to US$2,632
million. US domestic revenue excluding contract brewing also declined by 1% as
higher front-line pricing and lower price promotions were offset by lower
domestic volumes. Miller recorded firmer pricing across its portfolio than the
other major domestic brewers.

EBITA for the period, of US$253 million, was 12% lower than the prior year's
US$286 million, mainly as a result of higher input costs of aluminium, glass and
energy. Marketing expenditure was approximately level compared to the comparable
period of the prior year.

Miller continues to focus efforts behind its flagship Miller Lite brand, while
improving the performance of other key brands to protect Miller's share of key
industry segments. Miller is also reshaping its brand portfolio to capitalise on
growth areas of the beer industry, including low-calorie, caffeinated, craft and
import beers. In August, Miller completed the purchase of the Sparks and Steel
Reserve brands from McKenzie River, adding two brands to the portfolio that are
experiencing double-digit growth rates and offer significant expansion
opportunities through main retailers. In September, Miller announced the
geographic expansion of the Leinenkugel's range to six additional markets across
the US. The distribution and marketing of Peroni Nastro Azzurro is expanding the
brand across key US cities, and Miller recently announced an increased focus on
marketing and selling the Polish Tyskie brand as well as the importation of
three of SABMiller's Latin American brands into the US.

Profitability in the second half of the year will be affected by the ongoing
competitive conditions, growth in import and craft beers, consumer-facing
marketing investment behind Miller Lite, and high levels of commodity and energy

Africa & Asia
                                                    Sept          Sept
                                                    2006          2005
Financial summary                                   US$m          US$m       %

Group revenue (including share of associates)      1,356         1,065      27

EBITA                                                240           209      14

EBITA margin (%)                                    17.7          19.7

Sales volumes (hl 000)*
- Lager                                           40,854        31,156      31
- Lager organic                                   38,724        31,156      24
- Carbonated soft drinks (CSDs)                    2,030         1,939       5
- Other beverages                                  8,010         7,142      12

* Castel volumes of 7,563 hl 000 (2005: 6,826 hl 000) lager, 4,693 hl 000 (2005:
4,382 hl 000) CSDs, and 1,966 hl 000 (2005: 1,740 hl 000) other beverages are
not included.

Africa & Asia growth momentum continued in the period under review, with lager
volume growth of 31% (organic growth of 24%) and reported EBITA growth of 14%,
despite currency weakness in some of our countries. Geographic EBITA mix in
Africa, combined with faster growth in Asia, resulted in a lower EBITA margin
for the region.


Africa delivered a strong half year performance. Total Africa lager volumes
(excluding Zimbabwe) were up 6%, driven by good performances from Mozambique,
Uganda, Tanzania and Ghana. Our total CSD volumes grew by 24% (excluding
Zimbabwe) as a result of both industry and market share growth in Angola. EBITA
improved on prior year, despite the expected decline in EBITA in Botswana and
rising input costs across Africa, particularly fuel costs.

In Mozambique, volume growth trends benefited from ongoing economic growth and
increased distribution with volumes advancing 10% over the prior period.

Uganda recorded volume growth of 19% for the half year, with the Eagle brands
continuing to perform well, despite an increase in excise tax for sorghum beers
in June 2006. Our mainstream brands, Nile Special and Club, showed renewed
growth whilst Chairman's ESB benefited from exports to neighbouring countries.

Tanzania recovered from a slow start due to a longer than usual rainy season in
the first quarter to record volume growth of 5%, and benefited from a strong
agricultural sector in the second quarter. Among the core brands, Castle was a
strong contributor to growth, up 10%. However increasing inflation and input
cost pressures including rising fuel prices hindered EBITA margin development.

In Zambia volume growth was 5% for lager and 3% for CSDs. The rollout of the
Eagle brand in Zambia has been successful, with its share of total volumes more
than doubling to 15%.

Conditions in Botswana remained difficult; with volumes of both lager and soft
drinks down by 13%. Consumer spending has not yet recovered from the impact of
the Pula devaluations in the prior years. Rising commodity input prices have
been exacerbated by exchange rate impacts.

In Ghana volumes grew by 35% driven by the recently launched Stone Extra Strong
Lager brand.

Our CSD businesses in Angola produced an excellent performance, with consumer
demand stimulated by improved availability and extended pack offerings,
resulting in market share gains and volume growth of 43%.

Our associate Castel grew total lager beer volumes by 11% and CSDs by 7%.


The excellent growth trend from our Asian businesses continued in the first half
and EBITA for the region grew strongly despite the inclusion of start-up costs
in Vietnam.

Volume growth in China of 32% (organic growth of 27%) was well in excess of
industry growth, and was spread across all regions. During the period CR Snow
became China's largest brewer by volume and Snow is now acknowledged as the top
selling beer brand in the country. Significant marketing, distribution and
capital investments continue to be made behind the Snow brand. The volume growth
and shift in mix towards Snow enhanced profitability, notwithstanding the costs
of integration of recent acquisitions and start-up losses from our two new
greenfield sites.

India experienced strong growth in volumes of over 40%, on a pro-forma basis for
the first six months. The business has benefited from strong demand in Andhra
Pradesh and de-regulation of markets in the Northern region. On 12 September
2006, we acquired the Foster's brand and business in India. Foster's has a
strong position in the mild lager segment and complements our existing brand

In Vietnam our greenfield brewery (in a joint venture with Vinamilk) is on
target to commence operations early in the new calendar year. In Australia the
group signed an agreement with Coca-Cola Amatil to market our international
worthmore brands, and the venture is expected to be operational in mid November

South Africa: Beverages
                                                    Sept          Sept
                                                    2006          2005
Financial summary                                   US$m          US$m       %
Group revenue (including share of associates)      1,950         1,864       5

EBITA                                                411           375      10

EBITA margin (%)                                    21.1          20.1

Sales volumes (hl 000)
- Lager                                           12,237        12,153       1
- Soft drinks                                      6,505         6,414       1
- Carbonated soft drinks (CSDs)                    6,080         6,091       -
- Other beverages                                    425           323      32

Both beer and soft drinks delivered further volume growth in the six month
period to September despite facing challenging comparatives in CSDs. Growth was
assisted by an Easter trading period in the current year, a continuation of the
strong trends in our premium beer brands and growth in our non-carbonated
alternative soft drinks.

The growth rate of the South African economy continued over the last six months
despite higher international crude oil prices and rising domestic interest
rates. Household disposable income was buoyed by rising employment and wage
levels as well as some tax relief for individuals. Consumption by households
rose in line, led by higher purchases of durable and semi-durable goods. This
was accompanied by higher debt levels which, in a rising local interest rate
environment, may dampen volume growth going forward.

Lager volumes grew by 1% driven by strong performances by our premium and fruit
alcoholic beverage (FAB) portfolios. Castle Lite, Miller Genuine Draft, Peroni
Nastro Azzurro and Amstel were again the biggest contributors to the growth in
the premium category with all these brands delivering double digit growth. The
introduction of a bulk returnable pack in our Brutal Fruit product range in the
previous financial year continued to benefit these brands.

Product and pack innovation continue. In October a new apple-flavoured premium
FAB, Sarita, was launched, presented in a flint bottle with an easy-to-open rip
tab crown, a first for South African consumers. Our Redd's brand has new,
contemporary, pressure sensitive labels on both packs. These upgrades leverage
the investment in new labelling capability initiated last year. We have also
introduced a new 330ml returnable bottle for our mainstream lager beer.

Good progress was made in expanding direct distribution of both beer and soft
drinks. The beer customer base increased by 8% and soft drink's growth in direct
store delivery customers was almost 5%.

Total soft drink beverage volumes grew by over 1%, led by strong growth in
alternative beverages, particularly by water (Valpre and Bon Aqua) and energy
drink (Power Play) portfolios. CSD volume growth was level with the previous
year's volumes which had grown 10% over the comparable period due to an
unusually warm winter season.

Revenue growth of 5% was driven by increased sales volumes, selective price
increases in lager and soft drink products and continuing growth of premium
products. Tight cost control and favourable raw material hedging positions
assisted EBITA to grow 10%, notwithstanding increased distribution costs to
enable greater market penetration.

The completion of the liquor industry charter, in line with the BEE (Broad Based
Black Economic Empowerment) Act, is contingent on the final publication of the
Codes of Good Conduct. We expect that these codes will be published before the
end of the financial year.

Sales of Appletiser continued to show strong growth both in South Africa and
internationally with total volumes up 14%. Distell delivered growth in total
volumes, revenue and profit.

South Africa: Hotels and Gaming
                                                    Sept         Sept
                                                    2006         2005
Financial summary                                   US$m         US$m        %
Group revenue (share of associates)                  167          154        9

EBITA                                                 44           38       16

EBITA margin (%)                                    26.6         25.0

Revenue per available room (Revpar) - US$          58.46        52.58       11

The group is a 49% shareholder in the Tsogo Sun group, which reported a strong
first half result. Growth in the South African economy continued into the
current financial year and positively influenced trading performance in both the
Hotels and Gaming divisions. Good occupancy levels continue to be achieved by
the Hotels division with strong growth in room rates, and the Gaming industry
has enjoyed further growth but at a slower pace than last year.

Financial review

Accounting policies

The accounting policies followed are the same as those published within the
Annual Report and Accounts for the year ended 31 March 2006 amended for IFRIC
Interpretation 4 'Determining whether an arrangement contains a lease' and an
amendment to IAS 39 'Financial Guarantee Contracts'. The adoption of these new
policies did not impact the company's financial results as reported. The Annual
report and accounts for the year ended 31 March 2006 are available on the
company's website, The balance sheet as at 31 March 2006 has
been restated for further adjustments relating to initial accounting for
business combinations, further details of which are provided in note 9.

Segmental analysis

The group's operating results on a segmental basis are set out in the segmental
analysis of operations, and the disclosures are in accordance with the basis on
which the businesses are managed and according to the differing risk and reward
profiles. SABMiller believes that the reported profit measures - before
exceptional items and amortisation of intangible assets (excluding software),
and including associates on a similar basis (i.e. before interest, tax and
minority interests) - provide additional information on trends and allow for
greater comparability between segments. Segmental performance is reported after
the specific apportionment of attributable head office service costs.

This announcement includes segmental results and commentaries for Latin America,
following our investment in Bavaria whose operations are located in South
America. The reporting segment Latin America combines the group's South America
operations with the previously reported geographical segment of Central America.

Accounting for volumes

In the determination and disclosure of reported sales volumes, the group
aggregates 100% of the volumes of all consolidated subsidiaries and its equity
accounted associates, other than associates where the group exercises
significant influence but primary responsibility for day to day management rests
with others (such as Castel and Distell). In these latter cases, the financial
results of operations are equity accounted in terms of IFRS but volumes are
excluded. Contract brewing volumes are excluded from total volumes; however
revenue from contract brewing is included within revenue. Reported volumes
exclude intra-group sales volumes.

Organic, constant currency comparisons

The group discloses certain results on an organic, constant currency basis, to
show the effects of acquisitions net of disposals and changes in exchange rates
on the group's results. Organic results exclude the first twelve months' results
of acquisitions and the last twelve months' results of disposals. Constant
currency results have been determined by translating the local currency
denominated results for the period ended 30 September 2006 at the exchange rates
for the comparable period in the prior period.

Acquisitions and disposals

On 3 July 2006, the group announced that it had entered into an agreement to
acquire the Sparks and Steel Reserve brands from US contract brewing partner
McKenzie River Corporation for a cash consideration of US$215 million. This
transaction was subsequently completed on 11 August 2006.

On 4 August 2006, the group announced that it had entered into an agreement to
acquire a 100% interest in the Foster's business and Foster's brand in India for
a cash consideration of US$120 million. This transaction was subsequently
completed on 12 September 2006.

On 10 August 2006, the group announced that it had entered into a joint venture
with Coca-Cola Amatil (CCA) to import, market and distribute SABMiller's
international premium brands in Australia. Under the terms of the agreement
SABMiller and CCA will each hold a 50% interest in the joint venture, which will
be known as Pacific Beverages Pty Ltd, and is expected to be operational by mid
November 2006.

Exceptional items

Items that are material either by size or incidence are classified as
exceptional items. Further details on the treatment of these items can be found
in note 3.

Exceptional charges of US$27 million reported during the period relate to
integration costs, incurred by the Bavaria group of which US$24 million was
incurred in the region and US$3 million in the corporate centre. In the prior
comparable period there were no exceptional items.

Borrowings and net debt

Gross debt, comprising borrowings of the group together with the fair value of
derivative assets or liabilities held to manage interest rate and foreign
currency risk of borrowings, has decreased to US$7,579 million from US$7,775
million at 31 March 2006 (as restated).  Net debt comprising gross debt net of
cash and cash equivalents and the loan participation deposit has decreased to
US$6,732 million from US$7,107 million at 31 March 2006 (as restated). An
analysis of net debt is provided in note 8. The group's gearing (presented as a
ratio of debt/equity) has decreased to 49.0% from 52.3% at 31 March 2006 (as

On 27 June 2006, SABMiller plc successfully raised US$1,750 million of new debt
through the issue of a US$300 million 3 year Floating Rate Note at US LIBOR plus
30 basis points, a US$600 million 6.2% 5 year bond and a US$850 million 6.5% 10
year bond. The proceeds of these issuances were used to refinance amounts drawn
under committed facilities related to the Bavaria transaction, including the
subsequent purchase of minority interests and the restructuring of priority

The average borrowing rate for the total debt portfolio at 30 September 2006 was
6.7% (2005: 5.6%), compared to 6.9% at 31 March 2006.

Further progress has been made in the restructuring of priority debt at the
subsidiary company level to remove structural subordination of senior lenders to
SABMiller plc. In particular, debt in the Bavaria group comprising US$500
million 144A bonds and US$150 million (equivalent Colombian pesos) related to a
securitisation programme were repaid in May 2006 and in October 2006

Since 30 September 2006, the group has diversified further its sources of
financing by launching on 12 October 2006 a US$1,000 million commercial paper
programme. This programme also increases the flexibility of the group's
financing arrangements at a lower cost of debt.

Finance costs

Net finance costs increased to US$242 million, a 214% increase on the prior
year's finance costs of US$77 million, reflecting the increase in net debt
following the consolidation of the Bavaria group from October 2005 and
subsequent acquisition of minority interests.

Profit before tax

Profit before tax of US$1,378 million was up 22% on prior year, reflecting the
inclusion of South America and performance improvements across the businesses
which more than offset a number of exceptional items (as described above).


Our effective tax rate, of 35.7%, is marginally higher than the prior year
period under review. It is higher than the prior year full year rate, reflecting
a different geographic mix of profits across the group.

Earnings per share

The group presents adjusted basic earnings per share to exclude the impact of
the amortisation of intangible assets (excluding software) and other
non-recurring items, which include post-tax exceptional items, in order to
present a more meaningful comparison for the years shown in the consolidated
financial statements. Adjusted basic earnings per share of 56.6 US cents are up
7% on the prior comparable period, reflecting the improved performance noted
above. An analysis of earnings per share is shown in note 5 to the financial

Cash flow

Net cash generated from operating activities before working capital movements
(EBITDA) increased by 39%, to US$1,964 million, compared to the prior period.
The ratio of EBITDA to revenue increased in the period to 21.0% (2005: 20.1%).

Currencies: South African rand/Colombian peso

During the period, the rand weakened by 25% against the US dollar and ended the
period at R7.76 to the US dollar compared to R6.20 at 31 March 2006, whilst the
weighted average rand/dollar rate weakened by 5% to R6.81 compared with R6.47 in
the prior year. The peso has weakened by 4% against the US dollar ending the
period at COP2,394 to the US dollar, compared to COP2,292 at 31 March 2006.


The board has declared an interim dividend of 14.0 US cents per share. The
dividend will be payable on 22 December 2006 to shareholders registered on the
London and Johannesburg registers on 1 December 2006. The ex-dividend trading
dates will be 29 November 2006 on the London Stock Exchange (LSE) and 27
November 2006 on the JSE Limited (JSE). As the group reports in US dollars,
dividends are declared in US dollars. They are payable in South African rand to
shareholders on the Johannesburg register, in US dollars to shareholders on the
London register with a registered address in the United States (unless mandated
otherwise), and in sterling to all remaining shareholders on the London
register. Further details relating to dividends are provided in note 6.

The rate of exchange applicable on 16 November 2006 will be used for US dollar
conversion into South African rand and the rate of exchange on 4 December 2006
will be used for US dollar conversion into sterling. Currency conversion
announcements will be made on the LSE's Regulatory News Service and on the JSE's
Stock Exchange News Service, indicating the rates of exchange to be applied.

From the close of business on 16 November 2006 until the close of business on 1
December 2006, no transfers between the London and Johannesburg registers will
be permitted, and from the close of business on 24 November 2006 until the close
of business on 1 December 2006, no shares may be dematerialised or

This statement, which should be read in conjunction with the independent review
report of the auditors set out below, is made to enable shareholders to
distinguish the respective responsibilities of the directors and the auditors in
relation to the consolidated interim financial information, set out on pages 17
to 29, which the directors confirm has been prepared on a going concern basis.
The directors consider that the group has used appropriate accounting policies,
consistently applied and supported by reasonable and appropriate judgements and

A copy of the interim report of the group is placed on the company's website.
The directors are responsible for the maintenance and integrity of information
on the company's website. Information published on the internet is accessible in
many countries with different legal requirements. Legislation in the United
Kingdom governing the preparation and dissemination of the financial statements
may differ from legislation in other jurisdictions.

On behalf of the board

E A G Mackay                     M I Wyman
Chief executive                  Chief financial officer

8 November 2006



We have been instructed by the company to review the financial information for
the six months ended 30 September 2006 which comprises the consolidated interim
balance sheet as at 30 September 2006, the related consolidated interim
statements of income, cash flows and recognised income and expense for the six
months then ended and the related notes. We have read the other information
contained in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing Rules
of the Financial Services Authority require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.

This interim report has been prepared in accordance with the basis set out in
note 1.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the disclosed accounting policies have
been applied. A review excludes audit procedures such as tests of controls and
verification of assets, liabilities and transactions. It is substantially less
in scope than an audit and therefore provides a lower level of assurance.
Accordingly we do not express an audit opinion on the financial information.
This report, including the conclusion, has been prepared for and only for the
company for the purpose of the Listing Rules of the Financial Services Authority
and for no other purpose. We do not, in producing this report, accept or assume
responsibility for any other purpose or to any other person to whom this report
is shown or into whose hands it may come save where expressly agreed by our
prior consent in writing.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2006.

PricewaterhouseCoopers LLP
Chartered Accountants

London, 8 November 2006

for the six months ended 30 September

                                       Six months     Six months           Year
                                    ended 30/9/06  ended 30/9/05  ended 31/3/06
                                        Unaudited      Unaudited        Audited
                              Notes          US$m           US$m           US$m

Revenue                          2          9,344          7,051         15,307

Net operating expenses                     (7,829)        (5,948)       (12,732)

Operating profit                 2          1,515          1,103          2,575
Operating profit before
exceptional items                           1,542          1,103          2,590
Exceptional items                3            (27)             -            (15)

Net finance costs                            (242)           (77)          (299)
Interest payable and
similar charges                              (388)          (117)          (377)
Interest receivable                           146             40             78

Share of post-tax results
of associates                                 105            100            177

Profit before taxation                      1,378          1,126          2,453
Taxation                         4           (470)          (377)          (779)

Profit for the financial
period                                        908            749          1,674

Profit attributable to
minority interests                            118             99            234
Profit attributable to
equity shareholders                           790            650          1,440
                                              908            749          1,674

Basic earnings per share
(US cents)                       5           52.9           51.3          105.0
Diluted earnings per share
(US cents)                       5           52.6           50.9          104.3

All operations are continuing.

at the 30 September

                                               30/9/06     30/9/05    31/3/06*
                                             Unaudited   Unaudited   Unaudited
                                     Notes        US$m        US$m        US$m

Non-current assets
Goodwill                                        12,678       7,415      12,814
Intangible assets                                3,741         150       3,596
Property, plant and equipment                    6,169       4,102       6,337
Investments in associates                        1,049       1,156       1,065
Financial assets:
   - Available for sale investments                 42          59          43
 - Derivative financial instruments                 72          14           3
Trade and other receivables                         95          58          86
Deferred tax assets                                359         164         274
                                                24,205      13,118      24,218
Current assets
Inventories                                        801         608         878
Trade and other receivables                      1,304       1,117       1,225
Current tax assets                                  52          28          54
Financial assets:
 - Derivative financial instruments                 66           8           4
       - Loan participation deposit                190           -         196
Cash and cash equivalents                8         657       1,142         472
                                                 3,070       2,903       2,829

Total assets                                    27,275      16,021      27,047

Current liabilities
Financial liabilities:
 - Derivative financial instruments                 (4)         (7)         (3)
 - Borrowings                                   (1,157)     (1,154)     (1,950)
Trade and other payables                        (2,493)     (1,936)     (2,414)
Current tax liabilities                           (354)       (332)       (316)
Provisions                                        (205)        (64)       (182)
                                                (4,213)     (3,493)     (4,865)
Non-current liabilities
Financial liabilities:
 - Derivative financial instruments               (136)         (2)       (175)
                       - Borrowings             (6,326)     (2,428)     (5,652)
Trade and other payables                           (61)        (48)        (86)
Deferred tax liabilities                        (1,537)       (188)     (1,437)
Provisions                                      (1,265)       (931)     (1,247)
                                                (9,325)     (3,597)     (8,597)

Total liabilities                              (13,538)     (7,090)    (13,462)

Net assets                                      13,737       8,931      13,585

Total shareholders' equity                      13,191       8,261      13,043
Minority interests                                 546         670         542
Total equity                                    13,737       8,931      13,585

* As restated (see note 9).

for the six months ended 30 September
                                             Six months     Six months           Year
                                          ended 30/9/06  ended 30/9/05  ended 31/3/06
                                              Unaudited      Unaudited        Audited
                            Notes                  US$m           US$m           US$m

Cash flows from operating
Net cash generated from
operations                     7                  2,152          1,289          3,291
Interest received                                    94             41             80
Interest paid                                      (347)          (123)          (401)
Interest element of
finance lease payments                               (1)             -              -
Tax paid                                           (371)          (394)          (869)
Net cash from operating
activities                                        1,527            813          2,101

Cash flows from investing
Purchase of property,
plant and equipment                                (462)          (404)          (999)
Proceeds from sale of
property, plant and
equipment                                            25             21             48
Purchase of intangible
assets                                             (240)           (15)           (33)
Purchase of investments                               -            (18)            (7)
Proceeds from sale of
investments                                           1              -              5
Acquisition of
subsidiaries (net of
cash acquired)                                     (145)          (180)          (717)
Purchase of shares from
minorities                                          (34)            (6)        (2,048)
Purchase of shares in
associates                                           (8)             -             (1)
Repayment of funding by
associates                                            -              -            122
Dividends received from
associates                                           73             38             71
Dividends received from
other investments                                     1              1              2
Net cash used in
investing activities                               (789)          (563)        (3,557)

Cash flows from financing
Proceeds from the issue
of shares                                            24             18             30
Purchase of own shares
for share trusts                                     (8)            (8)            (8)
Proceeds from borrowings                          3,710            265          3,002
Repayment of borrowings                          (3,702)          (356)          (900)
Capital element of
finance lease payments                               (9)            (9)           (28)
Increase in loan
participation deposit                                 -              -           (196)
Dividends paid to
shareholders of the
parent                                             (473)          (328)          (520)
Dividends paid to
minority interests                                  (68)           (63)          (167)
Net cash (used) /
generated in financing
activities                                         (526)          (481)         1,213

Net cash from operating,
investing and financing
activities                                          212           (231)          (243)
Effects of exchange rate
changes                                              26              2             11
Net increase /
(decrease) in cash and
cash equivalents                                    238           (229)          (232)

Cash and cash
equivalents at 1 April                              398            630            630
Cash and cash
equivalents at period end              8            636            401            398

for the six months ended 30 September

                                  Six months      Six months            Year
                               ended 30/9/06   ended 30/9/05   ended 31/3/06
                                   Unaudited       Unaudited         Audited
                                        US$m            US$m            US$m

Currency translation
differences on foreign
currency net investments                (302)           (227)           (128)
Actuarial gains on defined
benefit plans                              -               -              42
Tax on items taken directly to
equity                                     -               -             (17)
Net investment hedges                    106              10              (2)
Net losses recognised directly
in equity                               (196)           (217)           (105)

Profit for the period                    908             749           1,674

Total recognised income for
the period                               712             532           1,569
- attributable to equity
shareholders                             606             453           1,360
- attributable to minority
interests                                106              79             209


1. Basis of preparation

The financial information comprises the unaudited results of SABMiller plc for
the six months ended 30 September 2006 and 30 September 2005, together with the
audited results for the year ended 31 March 2006, restated for further
adjustments relating to initial accounting for business combinations. Further
details of these adjustments are provided in note 9. The financial information
in this report is not audited and does not constitute statutory accounts within
the meaning of s240 of the Companies Act 1985 (as amended). The board of
directors approved this financial information on 8 November 2006. The annual
financial statements for the year ended 31 March 2006, which represent the
statutory accounts for that year have been filed with the Registrar of
Companies. The auditors' report on those accounts was unqualified and did not
contain a statement made under s237(2) or (3) of the Companies Act 1985.

The unaudited financial information in this interim announcement has been
prepared in accordance with the Listing Rules of the Financial Services
Authority (FSA) and on a basis consistent with the IFRS accounting policies set
out in the Group's Annual report for the year ended 31 March 2006, except that
IFRIC Interpretation 4 'Determining whether an arrangement contains a lease' and
an amendment to IAS 39 'Financial guarantee contracts' have been implemented.
There is no material effect of either change on the current or prior periods.

IAS 34 'Interim financial statements' may be applied if a company elects to
apply it; it is not a mandatory Standard. The Group has chosen not to adopt IAS
34, 'Interim financial statements', in preparing its 2006 interim financial
statements and, therefore, this interim financial information is not in
compliance with IFRS.

The subsidiary and associated undertakings in the group operate in the local
currency of the country in which they are based. From a presentational
perspective, the group regards these operations as being US dollar-based as the
transactions of these entities are, insofar as is possible, evaluated in US
dollars. In management accounting terms all companies report in US dollars. The
directors of the company regard the US dollar as the presentational currency of
the group, being the most representative currency of its operations. Therefore
the consolidated interim financial statements are presented in US dollars.

Accounting policies

These interim financial statements should be read in conjunction with the annual
financial statements for the year ended 31 March 2006 and the accounting
policies laid down therein (which were published in June 2006). The financial
statements are prepared under the historical cost convention, except for the
revaluation to fair value of certain financial assets and liabilities.

2. Segmental information (unaudited)


The following table provides a reconciliation of Group revenue (including share
of associates' revenue) to segment revenue.

                            Share of                          Share of
                Segment  associates'     Group    Segment  associates'      Group
Six months      revenue      revenue   revenue    revenue      revenue    revenue   
ended 30           2006         2006      2006       2005         2005       2005
September:         US$m         US$m      US$m       US$m         US$m       US$m

Latin America     2,003            9     2,012        262            -        262
Europe            2,279            -     2,279      1,905            -      1,905
North America     2,632            -     2,632      2,651            -      2,651
Africa and Asia     681          675     1,356        545          520      1,065
South Africa:
                  _____________________________  _________________________________
- Beverages       1,749          201     1,950      1,688          176      1,864
- Hotels and
Gaming                -          167       167          -          154        154
                  _____________________________  _________________________________
South Africa:
Total             1,749          368     2,117      1,688          330      2,018
                  _____________________________  _________________________________
                  9,344        1,052    10,396      7,051          850      7,901
                  _____________________________  _________________________________

Year ended 31
March:                                               2006         2006       2006
                                                     US$m         US$m       US$m

Latin America                                       2,153           12      2,165
Europe                                              3,258            -      3,258
North America                                       4,912            -      4,912
Africa and Asia                                     1,203        1,018      2,221
South Africa:
- Beverages                                         3,781          423      4,204
- Hotels and Gaming                                     -          321        321
South Africa:
Total                                               3,781          744      4,525
                                                   15,307        1,774     17,081

Operating profit before exceptional items

The following table provides a reconciliation of operating profit (segment
result) to operating profit before exceptional items.

                                            Operating                              Operating
                                        profit before                          profit before
                Operating  Exceptional    exceptional  Operating  Exceptional    exceptional
Six months         profit        items          items     profit        items          items
ended 30             2006         2006           2006       2005         2005           2005
September:           US$m         US$m           US$m       US$m         US$m           US$m

Latin America         311           24            335         32            -             32
Europe                484            -            484        379            -            379
North America         251            -            251        286            -            286
Africa and Asia       124            -            124        108            -            108
South Africa:
Beverages             387            -            387        353            -            353
Corporate             (42)           3            (39)       (55)           -            (55)
                    1,515           27          1,542      1,103            -          1,103

Year ended 31
March:                                                      2006         2006           2006
                                                            US$m         US$m           US$m

Latin America                                                376           11            387
Europe                                                       567            -            567
North America                                                454            -            454
Africa and Asia                                              257            -            257
South Africa:
Beverages                                                  1,011            -          1,011
Corporate                                                    (90)           4            (86)
                                                           2,575           15          2,590


The following table provides a reconciliation of operating profit before
exceptional items to EBITA.

Six months    Operating      Share of Amortisation of   EBITA     Operating      Share of Amortisation of    EBITA
ended 30  profit before   associates'      intangible         profit before   associates'      intangible
September:  exceptional     operating          assets           exceptional     operating          assets
                  items profit before      (excluding                 items profit before      (excluding
                          exceptional       software)                         exceptional       software)
                                items                                               items
                   2006          2006            2006    2006          2005          2005            2005     2005
                   US$m          US$m            US$m    US$m          US$m          US$m            US$m     US$m

Latin               335             -              52     387            32             -               -       32
Europe              484             -               1     485           379             -               -      379
North               251             -               2     253           286             -               -      286
Africa and          124           115               1     240           108           100               1      209
Africa:        ____________________________________________________________________________________________________
- Beverages         387            24               -     411           353            22               -      375
- Hotels and          
Gaming                -            44               -      44             -            38               -       38
Africa:             387            68               -     455           353            60               -      413
Corporate           (39)            -               -     (39)          (55)            -               -      (55)
Group             1,542           183              56   1,781         1,103           160               1    1,264

Year ended
31 March:                                                              2006          2006            2006     2006
                                                                       US$m          US$m            US$m     US$m

Latin America                                                           387             -              49      436
Europe                                                                  567             -               2      569
North America                                                           454             -               -      454
Africa and Asia                                                         257           164               1      422
South Africa:
- Beverages                                                           1,011            51               -    1,062
- Hotels and Gaming                                                       -            84               -       84
South Africa:                                                         1,011           135               -    1,146
Total Corporate                                                         (86)            -               -      (86)
Group                                                                 2,590           299              52    2,941

The group's share of associates' operating profit is reconciled to the share of
post-tax results of associates in the income statement as follows:

                                         Six months     Six months        Year
                                              ended          Ended       ended
                                            30/9/06        30/9/05     31/3/06
                                               US$m           US$m        US$m

Share of associates' operating profit           183            160         299
Share of associates' net finance cost            (6)            (8)        (16)
Share of associates' tax                        (52)           (38)        (81)
Share of associates' minority interests         (20)           (14)        (25)
                                                105            100         177

Excise duties of US$1,887 million (2005: US$1,295 million) have been incurred
during the six months as follows: Latin America US$497 million (2005: US$29
million); Europe US$442 million (2005: US$355 million); North America US$461
million (2005: US$477 million); Africa and Asia US$152 million (2005: US$112
million) and South Africa US$335 million (2005: US$322 million).

The following table provides a reconciliation of EBITDA (the net cash inflow
from operating activities before working capital movements) before cash
exceptional items to EBITDA after cash exceptional items. A reconciliation of
group EBITDA after cash exceptional items can be found in note 7.

                    EBITDA                             EBITDA
               before cash                        before cash
               exceptional  Exceptional           exceptional  Exceptional
Six months           items        items   EBITDA        items        items   EBITDA
ended 30              2006         2006     2006         2005         2005     2005
September:            US$m         US$m     US$m         US$m         US$m     US$m

Latin America          493          (17)     476           52            -       52
Europe                 577            -      577          469            -      469
North America          325            -      325          359            -      359
Africa and Asia        159            -      159          137            -      137
South Africa:
Beverages              458            -      458          440            -      440
Corporate              (28)          (3)     (31)         (39)           -      (39)
                     1,984          (20)   1,964        1,418            -    1,418

Year ended 31
March:                                                   2006         2006     2006
                                                         US$m         US$m     US$m

Latin America                                             574           (4)     570
Europe                                                    733            -      733
North America                                             591            -      591
Africa and Asia                                           321            -      321
South Africa:
Beverages                                               1,205            -    1,205
Corporate                                                 (68)          (4)     (72)
                                                        3,356           (8)   3,348

3. Exceptional items
                                                         Six months     Six months Year ended
                                                      ended 30/9/06  ended 30/9/05    31/3/06
                                                          Unaudited      Unaudited    Audited
                                                               US$m           US$m       US$m

Subsidiaries' exceptional items included in operating profit:

Latin America
Bavaria integration and restructuring costs                     (24)             -        (11)

Bavaria integration costs                                        (3)             -         (4)

Exceptional items included in operating profit                  (27)             -        (15)

Taxation credit                                                   8              -          5
Minority interests' share of the above items                      -              -          -


Latin America and Corporate

Integration and restructuring costs associated with the consolidation of Bavaria
of US$27 million were incurred during the period (six months ended 30/9/05:
US$Nil million; year ended 31/3/06: US$15 million).

4. Taxation

                                  Six months          Six months    Year ended
                               ended 30/9/06       ended 30/9/05       31/3/06
                                   Unaudited           Unaudited       Audited
                                        US$m                US$m          US$m

Current taxation                         384                 350           701
- Charge for the period 1                377                 357           717
- Adjustments in respect of 
prior years                                7                  (7)          (16)
Withholding taxes and 
other taxes                               48                  29            78
Total current taxation                   432                 379           779

Deferred taxation                         38                  (2)            -
- Charge for the period 2                 33                  (2)            7
- Adjustments in respect of
prior years                                5                   2            (5)
- Rate change                              -                  (2)           (2)

Total taxation                           470                 377           779

Effective tax rate, before
amortisation of intangibles
(excluding software) and
exceptional items (%)                   35.7                35.3          33.6

The effective tax rate is calculated including share of associates' operating
profit before exceptional items and share of associates' tax before exceptional
items. This calculation is on a basis consistent with that used in prior years
and is also consistent with other group operating metrics.

1 The current tax charge for the period includes a UK corporation tax charge of
US$4 million (six months ended 30/9/05: charge of US$14 million; year ended 31/3
/06: US$29 million charge).

2 The deferred tax charge for the period includes a UK corporation tax charge of
US$5 million (six months ended 30/9/05: charge of US$10 million; year ended 31/3
/06: US$6 million charge).

5. Earnings per share

                                  Six months          Six months    Year ended
                               ended 30/9/06       ended 30/9/05       31/3/06
                                   Unaudited           Unaudited       Audited
                                    US cents            US cents      US cents

Basic earnings per share                52.9                51.3         105.0
Diluted earnings per share              52.6                50.9         104.3
Headline earnings per share             55.4                52.7         108.3
Adjusted basic earnings per share       56.6                52.7         109.1
Adjusted diluted earnings per
share                                   56.3                52.2         108.4

The weighted average number of shares was:

                                      30/9/06         30/9/05         31/3/06
                                    Unaudited       Unaudited         Audited
                                  Millions of     Millions of     Millions of
                                       shares          shares          shares

Ordinary shares                         1,498           1,270           1,376
ESOP trust
ordinary shares                            (4)             (4)             (4)
Basic shares                            1,494           1,266           1,372
Dilutive ordinary shares
from share options                          9              11               9

Diluted shares                          1,503           1,277           1,381

Adjusted and headline earnings

The group has also presented an adjusted basic earnings per share figure to
exclude the impact of amortisation of intangible assets (excluding capitalised
software) and other non-recurring items for the years shown in the consolidated
financial statements. Adjusted earnings per share are based on adjusted headline
earnings for each financial year and on the same number of weighted average
shares in issue as the basic earnings per share calculation. Headline earnings
per share are calculated in accordance with the UK Society of Investment
Professionals (UKSIP) formerly the Institute of Investment Management and
Research Statement of Investment Practice No. 1 entitled 'The Definition of
Headline Earnings'. The adjustments made to arrive at headline earnings and
adjusted earnings are as follows:


                                  Six months          Six months    Year ended
                               ended 30/9/06       ended 30/9/05       31/3/06
                                   Unaudited           Unaudited       Audited
                                        US$m                US$m          US$m

Profit for the financial period
attributable to equity holders of 
the parent                               790                 650         1,440
Early redemption penalty in respect
of private placement notes                 -                  13            13
(Profit) / loss on derivatives on
capital items 1                           (1)                 10             5
Amortisation of intangible assets
(excluding capitalised software)          56                   1            52
Impairment of property, plant and
equipment                                  2                   -             4
Profit on sale of property, plant and
equipment                                 (6)                 (2)           (5)
Tax effects of the above items           (17)                 (7)          (19)
Minority interest effects                  3                   2            (6)
Headline earnings (basic)                827                 667         1,484
Integration / reorganisation
costs (net of tax effects)                19                   -            13
Adjusted earnings                        846                 667         1,497

1 This does not include all derivative movements but includes those in relation
to capital items for which hedge accounting cannot be applied.

6. Dividends paid and proposed

Dividends paid are as follows:
                                  Six months          Six months    Year ended
                               ended 30/9/06       ended 30/9/05       31/3/06
                                   Unaudited           Unaudited       Audited
                                    US cents            US cents      US cents

Prior year final dividend
paid per ordinary share                 31.0                26.0          26.0
Current year interim
dividend paid per 
ordinary share                             -                   -          13.0

The interim dividend declared of 14.0 US cents per ordinary share is payable on
22 December 2006 to ordinary shareholders on the register as at 1 December 2006
and will absorb an estimated US$210 million of shareholders' funds.

7. Reconciliation of profit for the year to net cash generated from operations
                                  Six months          Six months    Year ended
                               ended 30/9/06       ended 30/9/05       31/3/06
                                   Unaudited           Unaudited       Audited
                                        US$m                US$m          US$m

Profit for the year                      908                 749         1,674
Taxation                                 470                 377           779
Share of post-tax
results of associates                   (105)               (100)         (177)
Interest receivable                     (146)                (40)          (78)
Interest payable and
similar charges                          388                 117           377
Operating profit                       1,515               1,103         2,575
   Property, plant and equipment         270                 204           444
   Containers                             85                  45           111
Container breakages,
shrinkage and write-offs                  11                  11            77
Profit on sale of property,
plant and equipment                       (6)                 (2)           (5)
Impairment of property,
plant and equipment                        2                   -             4
Amortisation of intangible assets         81                  22           105
Net (gain) / loss 
from fair value hedges                    (8)                 20             5
Dividends received from
other investments                         (1)                 (1)           (3)
Charge with respect to
share options                             14                  10            17
Restructuring and integration
costs (Latin America, Corporate)           -                   -             7
Other non-cash movements                   1                   6            11
Net cash generated from
operations before working
capital movements (EBITDA)             1,964               1,418         3,348
Net inflow / (outflow) in
working capital                          188                (129)          (57)
Net cash generated 
from operations                        2,152               1,289         3,291

Cash generated from operations include cash flows relating to exceptional items
of US$20 million in respect of South America integration and restructuring costs
(year ended 31 March 2006: US$8 million in respect of South America integration
and restructuring costs; six months ended 30 September 2005: US$Nil million).

8. Net debt

Net debt is analysed as follows:
                                             As at         As at         As at
                                           30/9/06       30/9/05      31/3/06*
                                         Unaudited     Unaudited     Unaudited
                                              US$m          US$m          US$m

Borrowings                                  (7,260)       (2,830)       (7,251)
Borrowings-related derivative financial
instruments                                    (96)           12          (173)
Overdrafts                                    (206)         (741)         (324)
Finance leases                                 (17)          (11)          (27)
Gross debt                                  (7,579)       (3,570)       (7,775)

Loan participation deposit                     190             -           196
Cash and cash equivalents (excluding
overdrafts)                                    657         1,142           472
Net debt                                    (6,732)       (2,428)       (7,107)

*As restated (see note 9).

Cash and cash equivalents on the Balance Sheet are reconciled to cash and cash
equivalents on the Cash Flow as follows:
                                              As at         As at        As at
                                            30/9/06       30/9/05      31/3/06
                                          Unaudited     Unaudited      Audited
                                               US$m          US$m         US$m

Cash and cash equivalents (Balance Sheet)       657         1,142          472
Overdrafts                                     (206)         (741)        (324)
Legal right of offset                           185             -          250
Cash and cash equivalents (Cash Flow)           636           401          398

9. Business combinations

The initial accounting under IFRS 3, 'Business Combinations', for the Bavaria
transaction had not been completed as at 31 March 2006. During the six months
ended 30 September 2006, adjustments to provisional fair values in respect of
the Bavaria transaction have been made. As a result comparative information for
the year ended 31 March 2006 has been presented in these interim financial
statements as if the further adjustments to provisional fair values had been
made from the transaction date of 12 October 2005. The impact on the prior
period Income Statement has been reviewed and no material adjustments to the
Income Statement as a result of the adjustments to provisional fair values are
required. The following table reconciles the impact on the Balance Sheet reporte
d for the year ended 31 March 2006 to the comparative Balance Sheet presented in
this interim announcement.

Balance Sheet
                                               to provisional       At 31/3/06
                               At 31/3/06         fair values      As restated
                                  Audited           Unaudited        Unaudited
                                     US$m                US$m             US$m
Non-current assets
Goodwill                           12,539                 275           12,814
Intangible assets                   3,596                   -            3,596
Property, plant and equipment       6,340                  (3)           6,337
Other non-current assets            1,476                  (5)           1,471
                                   23,951                 267           24,218
Current assets
Inventories                           881                  (3)             878
Trade and other receivables         1,218                   7            1,225
Other current assets                  726                   -              726
                                    2,825                   4            2,829
Total assets                       26,776                 271           27,047

Current liabilities
Trade and other payables           (2,473)                 59           (2,414)
Other current liabilities          (2,334)               (117)          (2,451)
                                   (4,807)                (58)          (4,865)
Non-current liabilities
Trade and other payables              (63)                (23)             (86)
Provisions                         (1,088)               (159)          (1,247)
Other non-current liabilities      (7,219)                (45)          (7,264)
                                   (8,370)               (227)          (8,597)
Total liabilities                 (13,177)               (285)         (13,462)
Net assets                         13,599                 (14)          13,585

Total equity                       13,599                 (14)          13,585


This announcement does not constitute an offer to sell or issue or the
solicitation of an offer to buy or acquire ordinary shares in the capital of
SABMiller plc (the 'Company') or any other securities of the Company in any
jurisdiction or an inducement to enter into investment activity.

This announcement includes 'forward-looking statements'. These statements
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. Such 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. Such 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 document. The
Company expressly disclaims any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statements contained herein 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


                                 SABMiller plc
                           (Registration No. 3528416)

                               Company Secretary
                                 John Davidson

                               Registered Office
                                SABMiller House
                               Church Street West
                                Surrey, England
                                    GU21 6HS
                            Telefax  +44 1483 264103
                           Telephone +44 1483 264000

                                  Head Office
                               One Stanhope Gate
                                London, England
                                    W1K 1AF
                            Telefax  +44 20 7659 0111
                           Telephone +44 20 7659 0100

                                Internet address

                               Investor Relations
                        [email protected]
                           Telephone +44 20 7659 0100

                              Independent Auditors
                           PricewaterhouseCoopers LLP
                               1 Embankment Place
                                London, England
                                    WC2N 6RH
                            Telefax  +44 20 7822 4652
                           Telephone +44 20 7583 5000

                           Registrar (United Kingdom)
                               Capita Registrars
                                  The Registry
                               34 Beckenham Road
                                 Kent, England
                                    BR3 4TU
                            Telefax +44 20 8658 3430
                    Telephone +44 20 8639 2157 (outside UK)
                       Telephone 0870 162 3100 (from UK)

                            Registrar (South Africa)
               Computershare Investor Services 2004 (Pty) Limited
                        70 Marshall Street, Johannesburg
                                  PO Box 61051
                               Marshalltown 2107
                                  South Africa
                            Telefax  +27 11 370 5487
                           Telephone +27 11 370 5000

                          United States ADR Depositary
                              The Bank of New York
                                 ADR Department
                               101 Barclay Street
                               New York, NY 10286
                            United States of America
                            Telefax +1 212 815 3050
                           Telephone +1 212 815 2051
                       Internet: http://
                 Toll free +1 888 269 2377 (USA & Canada only)

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