UK: LatAm, Africa drive SABMiller in FY, but European woes continue
- FY net profits leap by 75% to US$4.48bn
- Sales in year to end of March rise by 10.8% to $31.39bn
- Operating profits also jump, by 60% to $5.01bn
- SABMiller to focus on synergy delivery in Australia
SABMiller released its full-year numbers earlier today (24 May)
SABMiller has reported a significant jump in full-year profits, boosted by strong growth in Latin America and Africa, but developed markets remain a struggle.
Net profits in the 12 months to the end of March leapt by 75% to US$4.48bn, with sales rising by 10.8% to $31.39bn, the company said in a statement today (24 May) Operating profits were up 60% to $5.01bn.
Total volumes of 286m hectolitres were 4% up year-on-year, with lager volumes up 3%, soft drinks volumes rising 7% and other alcoholic beverages up 4%, the company said.
Latin America and Africa performed particularly well, with the brewer pointing to “intensified sales execution” and “rising consumer spending” as the reasons. South Africa and the Asia Pacific region also generated “significant, profitable growth”, the company said.
In a conference call with journalists this morning, SABMiller CEO Graham MacKay said Latin American markets were the “stars of the show”. But, in developed markets, including Europe and North America, MacKay said things were “more difficult”. On North America, he said: “Things are pretty subdued in what's known as the premium market”. European performance was particularly affected by volume declines in Poland and Romania and significant increases in raw material input costs, the company said.
In Australia, where the company bought Foster's last year, lager volumes were 4% down year-on-year, largely due to “subdued consumer sentiment”. SABMiller also said there would be a focus on “cost effectiveness” including “synergy delivery” in Australia.
Looking ahead, the company said it expected trading conditions to be “broadly unchanged” with “further growth in developing markets but no more than modest improvements in consumer spending in some more developed economies.”
“Unit input costs are expected to rise in mid-single digits in constant currency terms,” it added.
To read the company's official release, click here.
Click play, below, to view a company-sourced interview with SABMiller's chairman, Graham Mackay, and CFO, Jamie Wilson, in which the two discuss the brewer's H1 results, released earlier today (22 Nov...
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