SABMiller reported its first -half figures earlier today

SABMiller reported its first -half figures earlier today

SABMiller can expect short-term issues in Colombia and South Africa, but remains well-placed for structural long-term growth, according to an analyst. 

Ealier today (17 October), the brewer reported a 4% lift in first-half group sales, helped by a strong performance in Africa and signs of recovery in Europe and North America. But, in a note following the results, analysts UBS flagged that the company faces some potential bumps ahead. 

In Colombia, where SABMiller has 98% market share, UBS pointed to possible “volume volatility” ahead of elections next May. The brewer has already been affected by riots in the country this year and a weak macroeconomic environment.

In South Africa, where SABMiller's H1 sales were up by 7%, UBS flagged the risk of a “consumption slowdown” and a potential impact from a strike, currently on-going at its South African Breweries unit

However, the note concluded: “Longer-term, SAB is very attractively positioned for structural growth, with the potential for +4% organic lager volume growth, +7.5% group sales growth and +10.5% EBITA growth per annum.”

SABMiller will release full details of its Q2 and H1 performance on 21 November.