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SABMiller's full-year sales performance by region - Focus

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In a trading update earlier today, SABMiller reported a 5% lift in sales from the 12 months to the end of March. The top line also grew in the third quarter, by 7%. Here, we look at the 12- and three-month performances by region. All results are on an organic basis.

SABMiller released a trading update for fiscal-2016 today

SABMiller released a trading update for fiscal-2016 today

  • Latin America - Q4 sales +8%, FY +8%

The region posted a 5% volumes lift in the year, with Colombia earning credit for performing well - sales in the country were up by 11%. The brewer has looked to grow affordable bulk packs in the country, while unseasonably favourable weather also proved benficial. Aguila Light and Aguila Cero posted double-digit sales rises. In Peru, sales increased by 7% thanks to price increases in the year and to stronger sales for the Pilsen Callao above-mainstream beer brand. SAB's soft drinks volumes in the country were up by double digits. Ecuador, meanwhile, battled against softer macro-economic conditions and the introduction of trading restrictions in the period. Honduras and El Salvador combined saw lager volumes jump by 15%, although a 16% fall in volumes occured in Panama, thanks to a rise in excise duty in April, increased competitor intensity and a strike in July.

  • Africa - Q4 sales +12%, FY +11%

Lager volumes in Africa in the 12-month period rose by 5%, with soft drinks increasing by 8%. Sales in South Africa were up by 10% with premium volumes rising and mainstream volumes slipping. Soft drinks volumes in the country (+10%) were boosted by hot weather during the peak trading period in H2. Nigeria, which has provided headaches of late for beverage producers, was a healthy hunting ground for SAB, with sales leaping by 31% on a 27% lift on volumes. An expanded distribution footprint coupled with increased capacity and enhanced market execution was credited for the strong numbers. However, the "continuing turmoil" in South Sudan resulted in the closure of SAB's brewery in the country earlier this year, with the company now operating as an import business. In Angola, where currency depreciation has taken hold, SAB's associate, Castel is looking to scale back its activity "significantly".

  • Asia Pacific - Q4 sales +4%, FY +3%

Group volumes in Asia Pacific dipped in fiscal-2016 by 1%. Sales in Australia were up by 4%. The mainstream Victoria Bitter and Carlton Draught brands continue to struggle, although premium brands Peroni Nastro Azzuro and Yak were highlighted as performing well. Sales in China were up by 4%, although volumes dipped by 2% due to "tough industry and macro-economic headwinds".

  • Europe - Q4 sales +3%, FY +2%

Volumes were flat in Europe last year, with lager down 1% and soft drinks up 2%. Sales in Poland fell by 9% as SAB battled "significant" competitor activity in H1. Volumes in the second half rose by 6% as the company lowered prices to compete, benefiting its lower mainstream brand, Zubr. In the UK, sales rose by 5%, with volumes increasing by 3%. The country saw volumes head in the direction of Peroni to the cost of Miller Genuine Draught and its Polish beer brands. Italy and Romania benefitted from good weather in H2, while Russia, where SAB is represented by Anadolu Efes, continued to struggle with economic and political instability.

  • North America - Q4 sales -3%, YTD Flat

Thanks to a "solid" Q4, the brewer saw full-year sales catch back up with the year prior in North America, with volumes dipping by 1%. SAB's MilllerCoors JV in the country, which partner Molson Coors will take full control of later this year, saw Q4 sales-to-wholesalers inch up by 1%, although they were down by 2% in the full year. Premium light sales were down in the year, with Coors Light sales falling by low single digits. A marketing campaign in Q4 helped boost the brand's sales towards the end of the year. Miller Lite came in flat, thanks to accelerating sales in the second half. Sales in above-premium were "marginally up" thanks in part to the launch of Henry's Hard Soda in Q4. The Redd's brand portfolio increased sales by high single digits, although volumes in Q4 were down on healthy comparatives. Finally, below-premium sales fell by mid single digits.


Sectors: Beer & cider, Company results

Companies: SABMiller

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