COMPANIES
SABMiller on track so far
Posted Thu, 13 Oct 2005
Global brewing giant SABMiller said in a trading update on Wednesday its financial performance in the six-month period to September 30, 2005, was in line with management's expectations, with organic growth of some five percent in lager volumes recorded.
The group said Miller's US domestic sales to retailers were down 0.3 percent against the prior year in a trading environment that has become increasingly price-competitive and subject to higher input costs, both of which have affected profitability.
Volumes of carbonated soft drinks in Central America were approximately 3.5 percent above the prior year with growth in both Honduras and El Salvador, whilst beer volumes were down some seven percent principally as a result of excise increases in El Salvador.
The businesses in Europe generated organic growth in lager volumes of five percent, with a particularly pleasing performance in Poland complemented by more moderate growth in most other countries, SABMiller
said.
Turning to Africa and Asia, the group noted an organic increase in comparable lager volume of 13 percent over the prior year. This was driven by strong organic growth in China, together with good growth in Mozambique and Tanzania.
"Our South Africa Beverages business benefited from the warm winter weather during the second quarter. Beer volumes over the six months grew by almost three percent on a comparable basis, reflecting good trading in recent months.
"The favourable weather conditions together with successful promotions during the winter months resulted in an increase in soft drink volumes of some ten percent," commented SABMiller.
SABMiller shares fell 2.45 percent to end at 119.45 rand on the JSE on Wednesday.
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