SABMiller reported its full-year results earlier today

SABMiller reported its full-year results earlier today

Earlier today, SABMiller reported a slight rise in full-year profits, but sales fell as struggles in Europe continued. Here, just-drinks takes a more detailed look at the group's results: 

Latin America 

SABMiller's earnings in the region rose by 4% in the 12 months to US$2.2bn, but were affected by the depreciation of the Colombian peso and Peruvian nuevo sol against the US dollar.

Group sales, on an organic constant-currency basis, were up by 6%. This was driven by “selective price increases and favourable brand mix, supported by our continued focus on market-facing activities and effective trade execution, despite trading challenges in several markets”.

Lager volumes were up 1%, while soft drink volumes on a reported basis rose 4%. In Colombia, lager volumes grew by 2% on the prior year, while in Peru volumes were "marginally" up despite an excise tax-driven price increase.

Europe 

The firm reported a 10% drop in earnings in the region on a reported basis. Group sales grew 5% on a reported basis, helped by the full consolidation of Coca-Cola Icecek in Anadolu Efes’ results. Lager volumes in the region slipped 4%, while soft drink volumes were up 94% on a reported basis due to the inclusion of CCI's figures.

The group reported volumes drops in Poland and Anadolu Efes' beer business. However, this was offset by soft drinks volume growth in Anadolu Efes and an “improvement” in lager volumes in Romania (+2%), Slovakia (+6%), the Netherlands (+2%) and the UK (+5%). Volume performance in Russia and Turkey were both affected by government crackdowns on alcohol sales, but figures for the countries were not disclosed.

North America (MillerCoors)

Earnings in the region, through the MillerCoors JV with Molson Coors, rose by 8% to US$797m. Group sales were flat at $5.3bn. MillersCoors' sales-to-retailers were down by 3% on a reported basis. Net producer revenue was helped by “firm pricing and favourable brand mix” due to higher-margin products such as the Redd’s franchise, growth in the Tenth & Blake division and a decline in the economy segment.

Growing sales of higher-margin beers, along with “continued fixed cost reduction” and “lower marketing spend” helped drive a 120 basis points improvement in EBITA margin for MillerCoors.

Africa 

The group's profits in the region climbed by 12%, helped by a 6% rise in volumes, pricing and market share gains. Mainstream brands performed well and Castle Lite continued to expand in the premium segment, the company said.

However, growth was “hampered by poor economic fundamentals” in South Sudan and Zimbabwe. Nigeria meanwhile saw “double-digit lager volume growth”. “Focus on production efficiencies and increased local sourcing of raw materials helped contain variable cost increases and deliver reported EBITA margin growth of 190 basis points despite increased fixed costs related to investment in capacity,” the statement said.

Asia-Pacific 

Earnings in the region slipped by 1% to $939m, while group sales on a reported basis fell by 5%. The company blamed the depreciation of the Australian dollar against the US dollar.

However, on an organic, constant-currency basis, EBITA rose by 8% driven by Australia and China. In Australia, “pricing and a focus on premium growth platforms offset lager volume declines due from continued category and competitor pressure”. In China, organic, constant currency group net producer revenue growth of 17% was underpinned by higher volumes and the continued focus on premiumisation, led by Snow Draft and Snow Brave the World.

South Africa 

SABMiller's profits in the country fell by 9% to $1bn on a reported basis. Group sales fell by 11% on a reported basis. The soft drinks business was hit by “significant depreciation” of the South African rand against the US dollar. Lager volumes were level with the prior year, affected by the timing of Easter and the slowing economy. Castle Lite and Castle Milk Stout performed “strongly” in the premium segment.

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