SABMiller annual growth rate rises

SABMiller's annual growth rate rose more than expected as the beverage company's revenues climbed on excise-driven price increases and the impact of regional mix.

SABMiller's annual growth rate rose more than expected as the beverage company's revenues climbed on excise-driven price increases and the impact of regional mix.

The brewer of popular beers Peroni and Groslsh reported a 3.0% increase in lager volumes on an organic basis for the year to March 31st 2013, according to a trading update Thursday. It beat the 2.0% forecast by analysts at Investec.

Softdrink volumes were up 4.0% for the full year on an organic basis.

Group revenue grew by 7.0% on an organic constant currency basis, with group revenue per hectolitre up 3.0%, reflecting price hikes and its mix of beverages across a range of different geographical markets.

Lager volumes in the Latin American market, usually the group's biggest contributor to profitability, increased 3.0% compared with a year earlier. It missed Investec's 5.0% growth prediction. The company blamed a 1.0% decline in volumes in the fourth quarter due to softer economic conditions.

In Central America, lager volumes jumped by 5.0%, thanks to growth in premium brand Panama and its more affordable beer El Salvador.

Europe rose more than anticipated up 6.0% despite a challenging economic backdrop. Improved volume was delivered through successful launches of brand and pack innovations.

Romania experienced a particular surge in volumes as it shot up 24%, driven by expansion of the new PET pack of economy brand Ciucas launched at the end of the prior financial year.

In the UK, increased distribution contributed to lager volume growth of 4.0% for the year.

However, US domestic sales to retailers (STRs) of MillerCoors were down 2.0%, with a 3.3% decline in the last quarter, on a trading day adjusted basis, amid weaker industry performance.

Premium light STRs dropped mid single digits in the quarter, with a low single digit decline in Coors Light and a high single digit decline in Miller Lite.

Nevertheless Africa grew 6.0%, Asia Pacific rose 6.0% and South Africa increased 2.0%.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
The FTSE 100 is set for a makeover with an influx of new tech stocks
UK stockmarkets

The FTSE 100 is set for a makeover with an influx of new tech stocks

The FTSE 100 – the dullest index in the world – is about to reinvent itself as a host of new firms list on the market. The change is long overdue, say…
24 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021