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Analysis - SABMiller set for slower developing markets growth

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An analyst has forecast “more normalised” growth in SABMiller's developing markets, the brewer's main source of profit.

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Growth in emeriging markets, which account for 75% of SABMiller's EBIT, is still set to be “above average”, Nomura's Ian Shackleton said today (22 November). However, he warned: “We believe this (growth) looks set to be materially slower than historically.”

In SABMiller's first-half results, released yesterday, increased volumes in Africa helped grow EBITA by 15% while profit growth in China pushed Asia-Pacific's EBITA up by 7%. In a conference call after the results, CEO Alan Clark said “we have not seen the impact of any slowdown in our developing markets”. He added: “In Africa and China rates of growth are still relatively strong and absolutely fine to support growth.” 

Meanwhile, Shackleton also said Latin America is on course for a better second half as pressures in Colombia lessen.

He said: “We would expect Peru to remain subdued for the full-year given the excise tax increase implemented in May. However, we believe that underlying trends in key market Colombia should see some improvement in the second half after a mixed first half given social unrest and blockage of roads in the second quarter.”


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