Information  X 
Enter a valid email address

SABMiller PLC (SAB)

  Print      Mail a friend       Annual reports

Thursday 23 July, 2015

SABMiller PLC

Trading Statement

RNS Number : 8275T
SABMiller PLC
23 July 2015
 



 


23 July 2015

SABMiller plc Trading Update

SABMiller plc today issues its trading update for the group's first quarter ended 30 June 2015.

Alan Clark, Chief Executive of SABMiller, said:

"Both revenue and volumes grew strongly in Latin America and Africa in the quarter, tempered in particular by a challenging quarter in our key European markets where the trading environment remains difficult and softer volumes in China. We continue to make good progress in our strategy of driving top line growth which is reflected in the growth of revenue per hectolitre across our regions."

 

 

First quarter highlights

•    Group net producer revenue (NPR) grew by 3% on level beverage volumes, reflecting group NPR per hectolitre (hl) growth in all regions

•    Good beverage volume growth in Latin America and Africa was offset by declines in Europe in particular, together with Asia Pacific and North America

•    Soft drinks volumes were up 4% offset by a 1% decline in lager volumes  

•    Reported group NPR declined by 10% due to the depreciation of key currencies against the US dollar

 

 

Q1 growth
Organic, constant currency

Group NPR
growth
%

Beverage volume growth
%

Group NPR/hl growth
%

Latin America

6

5

1

Africa

7

4

4

Asia Pacific

4

  (3)

7

Europe

   (4)

(6)

2

North America

-

(2)

2

Total

3

-

3

 

 

The calculation of the organic growth rates excludes the impact of acquisitions and disposals. All growth rates in this release are over the prior year comparative period and are quoted on an organic basis for volumes and an organic, constant currency basis for group NPR and group NPR per hl.

 

 

Latin America

Stronger growth, led by Colombia

Group NPR in Latin America increased by 6%, driven by beverage volume growth of 5%, with lager volume growth of 4% and soft drinks volume growth of 7%. In Colombia, group NPR grew by 10% with beverage volumes up 9%. Strong lager growth of 9%, cycling a soft comparative due to a significant number of dry days, benefited from strong market execution around sporting events and the success of our above mainstream brands Aguila Light and the recently launched alcohol-free Aguila Cero. The premium portfolio saw strong growth driven by Club Colombia and Miller Lite. In Peru, group NPR growth of 4% was driven by beverage volume growth of 3%, underpinned by continued growth of Pilsen Callao and the return to growth of Cusqueña, our premium brand. In Ecuador, group NPR grew by 1% reflecting positive brand mix, with beverage volumes down 1% due to a difficult trading environment. In Central America, group NPR grew by 1% driven by beverage volume growth of 4%, with soft drinks volume growth of 6%. Lager volumes declined by 4% due to an excise-driven price increase in Panama in April.

 

 

Africa

Continued growth momentum in Africa

In Africa, group NPR grew by 7% reflecting beverage volume growth of 4%, together with positive mix and moderate price increases across the region. Both lager volumes and soft drinks volumes grew by 4%. Group NPR in South Africa grew by 5%, driven by selective price increases on strategic packs and brands, together with premiumisation due to continued strong growth of Castle Lite. Lager volume growth of 1% was adversely impacted by the timing of Easter trading and the continued electricity outages which had a negative effect on consumption. Soft drinks volumes also grew by 1%, cycling a strong comparative. Group NPR in Tanzania declined by 3%, driven by a beverage volume decline of 9% as a result of excise-related and other pricing taken in the course of the prior year, together with negative brand and category mix. In Mozambique, group NPR grew by 24%, underpinned by beverage volume growth of 20% together with favourable pack and category mix. Robust lager volume growth was driven by our mainstream brand 2M and the affordable, cassava-based, Impala brand. Group NPR in Zambia grew by 7% reflecting favourable category and brand mix. Beverage volumes grew by 2%, with strong lager volume growth benefiting from strategic price reductions on selective packs partly offset by a decline in the more significant traditional beer volumes, together with a decline in soft drinks volumes. In Nigeria, group NPR growth remained strong, up 26%, driven by beverage volume growth as a result of enhanced market penetration and increased capacity. Group NPR in Zimbabwe declined by 8%, with beverage volumes declining due to the continued challenging economic conditions. Castel delivered single digit group NPR growth supported by beverage volume growth of 3%, held back by tough economic conditions in Angola. 

 

 

Asia Pacific

Group NPR per hl growth in both Australia and China offsetting the volume decline

In Australia, the total beer category continued to decline and was adversely impacted by the timing of Easter trading. Group NPR declined by 2% and beverage volumes declined by 5%. Group NPR per hl growth was supported by positive brand mix reflecting growth in the premium and contemporary segments driven by Great Northern. Our mainstream brands Victoria Bitter and Carlton Draught declined. In China, group NPR grew by 6% and beverage volumes declined by 3%, outperforming the market. Group NPR per hl growth was driven by an increase in one-way packaging volumes and the continuing premiumisation of the portfolio, led by Snow Brave the World which now represents approximately 20% of CR Snow's total volume. In India, group NPR grew by 15% underpinned by volume growth of 9% and price increases across several states.  The volume growth reflects the cycling of a soft comparative, with the prior year impacted by trading restrictions imposed during the national elections.

 

 

Europe

A challenging quarter as Europe cycles a strong performance in the prior period

In Europe, group NPR declined by 4% with beverage volumes down 6%, driven by a lager volume decline of 8% reflecting challenges in our key markets. In the Czech Republic and Slovakia, group NPR decreased by 6% with volumes down 8%, impacted by the timing of the Easter trading period as well as the recent major IT deployment. In Poland, group NPR declined by 17% with volumes down 15% in a weak beer market cycling a strong comparative prior year quarter. This was exacerbated by the delisting of our brands from a leading convenience chain and adverse price positioning of our brands relative to the competition. Group NPR decreased by 4% in the United Kingdom, where the continued growth of Peroni Nastro Azzurro was offset by declines in the Polish brand portfolio. In Italy, group NPR was up 1% with lower volumes offset by increased group NPR per hl due to firmer pricing. Across our remaining European subsidiaries, group NPR grew by low single digits. Our associate Anadolu Efes' lager volume declined while group NPR per hl improved, driven by price increases and favourable mix. Continued weakness in lager volumes was predominantly driven by geopolitical uncertainty in Ukraine and a beer market decline in Russia.

 

 

North America

Soft overall volumes, but with an acceleration in MillerCoors' above premium performance

North America group NPR was in line with the prior year, reflecting the performance of MillerCoors. While MillerCoors' volumes were lower, this was offset by growth in group NPR per hl due to higher net pricing and favourable brand mix, mainly due to growth in the above premium segment. US domestic sales volumes to retailers (STRs) declined by 3% in the quarter, reflecting weaker trading in late May and June. The STR decline was driven by the below premium portfolio with high single digit declines in Keystone Light and Milwaukee's Best, as well as a mid single digit decline in Miller High Life. Premium light STRs declined low single digits with similar declines in both Coors Light and Miller Lite. Total above premium brands grew low single digits led by the double digit growth of the Redd's franchise, mid single digit growth in the Blue Moon franchise and high single digit growth in the Leinenkugel's portfolio. Miller Fortune declined as the brand cycled the first quarter after its launch in February 2014. Domestic sales to wholesalers (STWs) declined by 2% in the quarter.

 

 

ENDS

 

Notes to editors

SABMiller is in the beer and soft drinks business, bringing refreshment and sociability to millions of people all over the world who enjoy our drinks. The company does business in a way that improves livelihoods and helps build communities.

SABMiller is passionate about brewing and has a long tradition of craftsmanship, making superb beer from high quality natural ingredients. Our local beer experts brew more than 200 beers from which a range of special regional and global brands have been carefully selected and nurtured.

SABMiller is a FTSE-20 company, with shares trading on the London Stock Exchange, and a secondary listing on the Johannesburg Stock Exchange. The group employs around 69,000 people in more than 80 countries, from Australia to Zambia, Colombia to the Czech Republic, and South Africa to the USA.  Every minute of every day, more than 140,000 bottles of SABMiller beer are sold around the world.

In the year ended 31 March 2015, SABMiller sold 324 million hectolitres of lager, soft drinks and other alcoholic beverages, generating group net producer revenue of US$26,288 million and EBITA of US$6,367 million.

 

This announcement is available on the company website: www.sabmiller.com

 

Further information is also available on:

www.sabmiller.com

www.facebook.com/sabmiller

www.twitter.com/sabmiller

www.youtube.com/sabmiller

 

 

Enquiries

SABMiller plc

 

 

t: +44 20 7659 0100

 

 

 

 

 

Richard Farnsworth

Christina Mills

Gary Leibowitz

Business Media Relations Manager

Director, Group Communications
and Reputation

Director,
Investor Engagement

SABMiller plc

SABMiller plc

SABMiller plc

T +44 20 7659 0188

T +44 20 7659 0105

+44 20 7659 0119

 

This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of SABMiller plc (the "Company") or any of its affiliates in any jurisdiction or an inducement to enter into investment activity.

This announcement includes "forward-looking statements". These statements may contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's products and services) are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Any information contained in this announcement on the price at which the Company's securities have been bought or sold in the past, or on the yield on such securities, should not be relied upon as a guide to future performance.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
TSTRTMRTMBBTBAA

a d v e r t i s e m e n t