Focus - SABMiller's H1 Performance by Region
SABMiller released its results today
The region's EBITA grew by 6% (10% organically). Group net producer sales on an organic, constant currency basis grew by 5%, with the Miller brand family “continuing to perform well” in the premium segment across the region, SABMiller said. Lager volumes, up 1%, were hit by national strikes and social unrest in Colombia and an excise increase in Peru. Growth in soft drinks was driven by pack innovations in Peru and Ecuador.
The region's EBITA fell by 1%, on a reported basis. Excluding the benefit of the full consolidation of Coca-Cola Icecek in Anadolu Efes’ results there was an 8% EBITA increase on a constant currency basis. Group net producer sales grew by 9%, driven by the addition of Coca-Cola Icecek soft drinks volumes, but on an organic, constant currency basis sales fell by 1%. There were volumes drops in Poland and Czech, but volumes growth in Romania, the UK and Slovakia.
The region's EBITA increased by 3% as a result of increased profitability in MillerCoors. The US JV between SABMiller and Molson Coors posted a slight profits rise in YTD results released this month. SABMiller's H1 group net producer sales in North America were level with the prior period, but lager volumes fell.
The region's EBITA grew by 15% (16% on an organic, constant currency basis) as a result of the increase in volumes, with “good growth” in Tanzania, Zambia, Nigeria and Ghana, SABMiller said. Group net producer sales growth of 9% (11% on an organic, constant currency basis) was driven by good lager volumes growth across our portfolios, as mainstream brands “performed well” while Castle Lite continued to expand in the premium segment.
EBITA grew 7% (12% on an organic, constant currency basis) driven by profit growth in both Australia and China. Reported group net producer sales for the region fell by 2%. In Australia, pricing and a focus on premium growth platforms drove a 2% sales growth organically. In China, organic, constant currency net producer sales grew by 14% as sales of premium Snow brand variants increased.
Beverages in the region were hit by the “significant” depreciation of the South African rand against the US dollar in the period, resulting in reported EBITA and group net producer sales drops of 8% and 9% respectively. On an organic, constant currency basis, EBITA grew by 8% as sales climbed by 7%. Lager volumes grew by 3% with both Castle Lite and Castle Milk Stout “performing well” in the premium segment, according to SABMiller. Soft drinks volumes increases of 1% was driven by the two litre PET pack in the sparkling portfolio, while water brands and the Play brand “performed well” in still drinks, the company said.
The penultimate part of this month's management briefing sees Ben Cooper continue his review of the environmental efforts of the larger brewers. Here, he looks at Heineken, Molson Coors and SABMiller....
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