UK: SABMiller sees FY profits, sales climb
- FY pre-exceptional net profits rise by 12% to US$3.8bn
- Group net sales in year to end of March increase by 10% to $34.49bn
- Operating profits jump by 14%, hitting $6.4bn
- Volumes increase by 7%
SABMiller released its full-year results today
SABMiller has posted a double-digit lift in full-year net profits although, after exceptions, profits fell by 22%.
Net profits for the year to the end of March rose by 12% year-on-year to US$3.8bn, the brewer confirmed earlier today (23 May), on the back of a 10% lift in net sales. Net profits after exceptional items fell markedly, however, by 22% to US$3.3bn.
The fall was due to a $1bn exceptional credit in the prior year following the Anadolu Efes transaction. In January last year, the company lined up an agreement to hand over its Russian beer operations to Anadolu Efes, in return for a 24% stake in the Turkey-based brewer
Operating profits increased, meanwhile, by 14% to $6.4bn, as sales grew in almost all regions.
Latin America and Africa were the group's top performing regions, with operating profits growing by 13% and sales up by 9% and 5% respectively.
“I am delighted to report another year of significant progress and strong results for the group,” acting chairman John Manser said. “Through a combination of innovation, effective brand development and good commercial execution we continued to develop the beer category and widen the appeal of our products. Strong growth in our developing markets was supported by investments in additional capacity, commercial capability and distribution reach.”
Manser is standing in for former CEO Graham Mackay, who underwent surgery for a brain tumour earlier this year. On a conference call with journalists, Alan Clark, who took over as chief executive, said Mackay is recovering well and is on medical leave.
Group volumes increased by 7%, with lager up 6% and soft drinks increasing by 15%.
The results were in line with a trading update released last month that highlighted strong volumes growth for the year in Europe. In today's results, SABMiller said that, except for the Czech Republic, all its markets saw improved domestic volumes performance.
South Africa was the only region to post a decline in sales, down 5% because of the continued depreciation of the rand, SABMiller said. However, organic sales were up 8%.
Looking ahead, the group said it expected trading conditions to remain unchanged, with further opportunities in emerging markets.
In morning trading, SABMiller's share price dropped by 1.6%.
To read the company's official statement, click here.
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