UK: SABMiller sees single-digit sales, volumes rises in FY
- FY group sales increase by 5%
- Lager volumes rise by 2%, soft drink volumes up by 3%
- Overall financial performance “in line” with SAB's expectations
- All divisions grow volumes in H2, except North America
SABMiller toasted fiscal 2010/11 as coming in in line with expectations
SABMiller has reported a lift in volumes for its latest fiscal year, noting that its financial performance is “in line” with its expectations.
In a trading update released today (19 April), the brewer said that lager and soft drink volumes were up by 2% and 3%, respectively, in organic terms for for the 12 months to the end of March. Group sales for the year increased by 5% organically, the company added.
In Latin America, lager volumes were flat for the year, as an emergency beer tax in Colombia dragged SABMiller's volumes in the country down by 6%. European lager volumes dipped by 3%, although fourth quarter performance improved due to weak comparatives.
SABMiller described the US market as “challenging” in the year, with its MillerCoors JV seeing domestic sales to retailers (STRs) falling by 2.6%. Domestic sales to wholesalers (STWs) also declined, by 2.7% for the year, with a 2.5% decline in the fourth quarter.
The brewer toasted Africa as its strongest region, with lager volumes up by 13% organically assisted by a strong final quarter. Zambia was SABMiller's star performer, with a leap in volumes of 28% year-on-year. In Asia, the region – as well as China and India – delivered full-year volumes improvements for the company of 10%.
Finally, South Africa's lager volumes grew by 2% in the year, while soft drinks volumes came in 3% up, despite a 3% slip in the fourth quarter due to poor weather and the absence of an Easter period.
SABMiller is focusing on local premium beers in Africa and believes that there is an untapped US$3.7bn of sales across nine of its key markets on the continent....
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