SABMillers share price drops

SABMiller's share price drops

SABMiller has said it does not expect an upturn in consumer spending in several key beer markets for the next six months, after full-year earnings disappointed investors.

The brewer's share price fell by almost 6% on the London Stock Exchange in early trading after profits missed analysts' estimates.

Net profits for the year to the end of March came in at US$2.08bn, compared to $2.15bn a year earlier, SABMiller said today (20 May).

However, cost savings and higher beer prices in many markets helped the Miller Genuine Draft brewer to report a 6% rise in earnings before interest, tax and amortisation (EBITDA).

A resurgence in the tail-end of the year lifted net sales by 4% to US$26.3bn. Like-for-like beer volume sales were flat against the prior 12 months, at 213m hectolitres, as difficulty in the US and Eastern Europe offset buoyant demand in Latin America, China and, to a lesser extent, Africa.

"A broader recovery in consumer spending is not expected before the second half of the current financial year," said the brewer in its outlook for the year ahead.

"Price increases will be taken selectively, predominantly in the second half, and we expect raw material input costs for the year to be level with, or marginally down on, the prior year."

For the full announcement, click here.