UK: SABMiller sees H1 sales rise, as Africa drives growth
- H1 group net sales up 4%
- Volumes up 2% in six months to end of September
- H1 growth driven by Latin American, Africa, South Africa
- “Confident” in long-term growth prospects
SABMiller saw strong sales in Africa and China
A strong performance in Africa and signs of improvement in Europe and North America has seen SABMiller deliver a single-digit rise in first-half sales.
The London-headquartered brewer said earlier today (17 October) that net sales in the six months to the end of September rose by 4%. Total volumes increased by 2% on an organic basis in the period, with lager volumes up 1% and soft drinks volumes up 5%.
The company pointed to its strong trading in Africa, where sales increased by 11% in the six months, against a volume rise of 7%. In Asia-Pacific, growth was driven by China, with sales up 14% in the country on a constant currency basis. In South Africa, sales rose 7%, while in Latin America sales grew 5%.
In Europe, however, sales fell by 1% as the region remains a “challenging environment”, the group said. In the US, in its MillerCoors business, sales to retailers fell by 3.2% in the first half.
However, chief executive Alan Clark said: “Following a challenging start to the year, trading conditions in Europe and North America saw a modest improvement in the second quarter, although the consumer environments here are expected to remain under pressure.”
Looking ahead, he added: “Despite current prevailing uncertainties about developing market economies, we remain confident in the long term growth prospects for the group.”
Shares in SABMiller were trading up by 4% today at GBP31.64.
To read the company's official statement, click here.
To read coverage of an analyst's note on these results, click here
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