• FY net profits up by 22% to US$2.56bn
  • Operating profits rise by 19% to $3.13bn
  • Net sales increase by 7% to $19.41bn
  • Higher beer prices, cost savings and strong demand in Africa and Asia drive performance.
SABMiller reports strong rise in full-year profits

SABMiller reports strong rise in full-year profits

SABMiller has reported a solid rise in net sales and a strong increase in profits for its latest fiscal year, despite ongoing fragile consumer demand for beer.

Strong demand for beer in much of Africa and Asia, particularly China, continued to contrast with sluggish volumes across swathes of Central and Eastern Europe, as well as in North America.

Higher beer prices helped SABMiller to increase net sales by 7% for the 12 months to the end of March, to US$19.41bn. Volume sales increased by 2% on the previous year.

Cost savings also boosted the Peroni Nastro Azzurro brewer, especially in the US, where its MillerCoors venture with Molson Coors generated $275m of annual synergies during the year. MillerCoors is on-track to meet its target of $750m in annual synergies by the end of calendar 2012. It has reached $684m so far.

SABMiller's net profits jumped by 22% for the year, to $2.56bn, while operating profits increased by 19% to $3.13bn.

Group CEO Graham Mackay said today (19 May): "Brand equities and sales execution drove profitable volume growth, and while we maintained focus on cost management, we continued to increase investment behind our local and international brand portfolios.”

In its outlook, SABMiller warned that uncertainty continues in Europe and North America. "Pricing will be considered selectively, country by country," it said.

For more on the company's results, including comments from Graham Mackay on the company's media call today, check back soon on just-drinks.

For the company's announcement, click here.