GLOBAL: Weak volumes dull SABMiller results - analysts
On-going problems with Foster's hurt SABMiller volumes in Asia-Pacific
Europe proved a rare bright spot in SABMiller's first-half results as volumes in key markets went limp, analysts have said.
The brewer and soft drinks maker notched up “headline meets” in today's (19 October) H1 results, according to a note from Nomura. However, despite Europe finding 9% volumes growth, Latin America and Asia-Pacific came in weaker than expected.
Latin America, which provides 32% of SABMiller profits from just 20% of volumes, posted a 4% volumes increase, one percentage point below Nomura's expectations, the analyst said.
Meanwhile, volumes growth in Asia-Pacific slowed to 3% as problems with SABMiller's Foster's unit continued to drag results. “The company is still losing market share in Australia and we would expect some negative operating leverage impact here,” Nomura said.
Analyst UBS also highlighted weaknesses in SABMiller's Latin America and Asia-Pacific volumes, and said overall group volumes in Q2 (up by 3%) were “disappointing” given a weak comparison from last year.
Also, “China (was) weaker than expected against very easy comps,” UBS said.
Nomura warned that, despite high volumes in Europe, the analyst is worried that margins are under pressure from discounts during the Euro 2012 football tournament co-hosted by Poland and Ukraine. Poland, which Nomura estimates makes up about half of SABMiller's European volumes together with Romania, saw lager volumes by increase 10% on the back of the event.
Europeans have the highest per-capita consumption of alcohol, and drinking causes nearly 1-in-10 cases of ill health and premature death, according to EU data. The European Commission's informal alcoh...
In the second part of this analysis of the European Union's review of its strategy to combat alcohol harm across the region, EurActiv details the issues that have to be considered....
SABMiller is looking to generate strong growth in its Latin American markets by focusing on the introduction of "affordable" products in the region....
- Coca-Cola pressure builds as bid rumours swirl
- Gin: Plymouth's from Plymouth, London's from...?
- Comment - IPO Launch a Tonic for Fever-Tree
- Fireball Recall: Putting Out Fire with Anti-Freeze
- Why Chinese beverages won't conquer the world
- NPD - Moët Hennessy’s Glenmorangie Dornoch
- Anheuser-Busch InBev cuts jobs in US shake-up
- Diageo targets Millenial women with Baileys push
- Pernod blames rule changes for Plymouth GI drop
- William Grant unveils bespoke Glenfiddich website
- Early Signals: future scenarios that will drive consumption and product innovation over the next five years
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global Beer Opportunities: Beyond Standard Lager
- The IWSR Global Trends Report 2014
- Global Cognac insights - market forecasts, product innovation and consumer trends research