SABMiller is growing volumes in Africa

SABMiller is growing volumes in Africa

The head of SABMiller has said he has seen no slowdown in Africa, and shaken off concern over a slowdown in China. 

In first-half results released today (21 November), SABMiller's developing markets offset a weak Europe and North America to push overall profits up 9%. Increased volumes in Africa helped grow EBITA by 15% while profit growth in China helped push Asia-Pacific's EBITA up by 7%.

In a conference call with journalists after the results, CEO Alan Clark said: “We have not seen the impact of any slowdown in our developing markets. In Africa and China rates of growth are still relatively strong and absolutely fine to support growth.”

Clark also said the economies in Colombia and Peru are improving, but warned: “We can't predict what will come in the future.”

He admitted China's economy has slowed down, but added: “The range it is sitting in now is fine for us to improve volume and premium mix.”

Clark was responding to a question from a journalist who cited media reports highlighting a slowdown in the economies of developing markets.

Meanwhile, commenting on Europe's poor first-half performance, in which organic EBITA slid by 8%, SABMiller's CFO Jamie Wilson said: “Europe has been a difficult region for a number of quarters now and we see the economies still performing sluggish so that's not a surprise to us.”

To view SABMiller's H1 performance by region, click here.