UK: H1 profits jump for SABMiller, but FY to see growth "moderation"

By | 22 November 2012

  • Half-year net profits rise by 13.2% to US$1.68bn
  • Net sales in six months to end of September climb by 7.9% to $11.37bn
  • Operating profits increase by 15.7% to $1.86bn
Growth in the full-year is expected to slow for SABMiller

Growth in the full-year is expected to slow for SABMiller

SABMiller has sounded a note of caution for its fiscal full-year, as it posted a healthy lift in profits for the first half.

The brewer said earlier today (22 November) that net profits in the six months to the end of September jumped by 13.2% to US$1.68bn. Net sales in the six-month period were up by 7.9% - as announced last month - at $11.37bn, while operating profits rose by 15.7% to $1.86bn.

Earnings before interest, tax and amortisation (EBITA) in the half-year were up by 17.5% at $3.17bn. Below is a breakdown of the regional EBITA performance, on a reported growth basis.

  • Asia Pacific +265%
  • Latin America +15%
  • Africa +8%
  • North America +6%
  • South Africa (Hotels & Gaming) -2%
  • South Africa (Beverages) -4%
  • Europe -10%

On an organic, constant currency basis, EBITA rose by 9%.

The soaring EBITA in Asia Pacific was credited to the acquisition of Foster's in September last year and higher profits in China and India. However, as the company noted in its trading update last month, sales volumes for its Australian business were down by more than the overall beer market in the country, by 8% on a pro forma basis.

“Broad-based revenue and profit growth in the first half reflects the continued success of our approach to the development of our brands, product portfolios, distribution and sales effectiveness," said company chairman, Graham Mackay. "We have strengthened our local flagship brands, complemented by product innovation across a wide range of styles and prices.

"Margins have risen modestly despite higher input costs, as a result of our cost reduction and procurement initiatives," he added.

Looking forward, SABMiller warned that the rate of growth in the first half of its fiscal year will slow in H2 as it cycles the completion of acquisitions and "business combinations" from a year earlier.

For the company's official statement, click here.

To view a video interview with Mackay and CFO Jamie Wilson, click here.

Expert analysis

SABMiller plc (SAB) - Financial and Strategic SWOT Analysis Review

SABMiller plc (SABMiller) is a multinational brewing and beverage company. It is one of the world's leading brewers in the world with brewing interests and distribution agreements across six continents. The company together with its subsidiaries, offers lager, soft drinks and other beverages in global markets. SABMiller's wide portfolio of brands includes over 200 plus international and local brands. In the fiscal 2012, the company sold 286 million hectoliters of total beverage and 229 million hectolitres of lager. The brands portfolio of premium international beers brands include Grolsch, Miller Genuine Draft and Peroni Nastro Azzurro while domestic brands include Pilsner Urquell, Aguila, Miller Lite, Snow, Castle and Tyskie. The company's six brands rank among the top 50 in the world. SABMiller is also one of the largest bottlers of Coca-Cola products in the world. The company is headquartered in London, England, the UK.

Sectors: Beer & cider, Company results, Emerging markets – BRIC

Companies: SABMiller, Foster’s

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