UK: SABMiller up in H1, warns on demand
SABMiller has reported a 4% revenue rise for its first half, but warned of weakening consumer demand in many markets.
Revenue for the six months ended 30 September hit US$11.2bn, boosted by higher prices in several markets, SABMiller said today (13 November). Pre-tax profit increased by 28% to $2bn.
Beer volumes rose by 3% globally, although SAB faced slowdowns in a number of countries, including Russia, Czech Republic, Colombia and South Africa.
SAB CEO Graham Mackay said: "Exceptional prior year volume growth and weakening consumer demand in certain markets presented a challenging start to the year. However, we have continued to drive revenue growth and offset higher input costs through firm pricing while protecting volumes and increasing share in some key markets."
Going forward, the UK-listed brewer warned of weakening consumer confidence in "many of our markets", amid a spreading economic downturn.
It said its global presence reduced reliance on one singular market, but added: "Cost pressures will continue and the strength of the US dollar relative to the group's major currencies is expected to adversely affect reported results."
A review of spending and investment plans is underway, SAB said.
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