Lager brewing leviathan SABMiller saw group revenue grow by one-tenth in the final quarter of its financial year on an organic constant currency basis, with revenue per hectolitre up by one-twentieth year-on-year.
On the same basis, group revenue for the full year grew by 7%, with group revenue per hectolitre up by 4%.
On an organic basis lager volumes were 3% ahead of the prior year for both the year and the fourth quarter. The fourth quarter production growth was in line with forecasts by Credit Suisse but below the 3.3% predicted by another stockbroker, Jefferies.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Soft drinks volumes were 7% higher than the prior year, and 12% higher in the final quarter, both on an organic basis.
"The group's overall financial performance is in line with our expectations," the company statement revealed.
Regional break-downAs expected, growth in Latin America and Africa compensated for sluggish demand in Europe and North America.
Latin America's lager volumes were up 8% on an organic basis compared with the prior year, with healthy growth sustained through the fourth quarter. Soft drinks volumes across the Latin America region were up 10%, showing strong growth across all categories, with SABMiller's non-alcoholic malt brands' volumes up 16% for the year.
Africa's full year lager volumes grew by 13% on an organic basis, with fourth quarter organic growth of 14%, despite strong prior year comparatives and emerging capacity constraints in some markets, SABMiller said.
In South Africa - a key market for the group ("SAB" stands for South Africa Breweries) - lager volumes for the year grew by 2% and were up 6% in the fourth quarter reflecting a strengthening competitive position.
In Europe full year lager volumes declined by 1% on an organic basis as beer market growth continued to be subdued and competitors aggressively promoted economy brands and packs. Fourth quarter volumes were down 2% in Europe, in line with forecasts by Credit Suisse.
For the 12 months ended March 31st, 2012, MillerCoors' US domestic sales to retailers were down 2.4%, with a 1.6% decline in the quarter to March on a trading day adjusted basis.
The mainstream beer segment in the US has continued to be affected by economic pressure on key consumer demographics. Domestic sales to wholesalers declined 2.7% for the year ended 31 March 2012, with a 0.9% decline in the fourth quarter.
Lager volumes in the Asia Pacific region grew by 4% for the year on an organic basis and by 1% in the fourth quarter.
JH
