UK: H1 profits jump for SABMiller, but FY to see growth "moderation"

• Half-year net profits rise by 13.2% to US$1.68bn
• Net sales in six months to end of September climb by 7.9% to $11.37bn
• Operating profits increase by 15.7% to $1.86bn

SABMiller has sounded a note of caution for its fiscal full-year, as it posted a healthy lift in profits for the first half.

The brewer said earlier today (22 November) that net profits in the six months to the end of September jumped by 13.2% to US$1.68bn. Net sales in the six-month period were up by 7.9% - as announced last month - at $11.37bn, while operating profits rose by 15.7% to $1.86bn.

Earnings before interest, tax and amortisation (EBITA) in the half-year were up by 17.5% at $3.17bn. Below is a breakdown of the regional EBITA performance, on a reported growth basis.

• Asia Pacific +265%
• Latin America +15%
• Africa +8%
• North America +6%
• South Africa (Hotels & Gaming) -2%
• South Africa (Beverages) -4%
• Europe -10%

On an organic, constant currency basis, EBITA rose by 9%.

The soaring EBITA in Asia Pacific was credited to the acquisition of Foster's in September last year and higher profits in China and India. However, as the company noted in its trading update last month, sales volumes for its Australian business were down by more than the overall beer market in the country, by 8% on a pro forma basis.

“Broad-based revenue and profit growth in the first half reflects the continued success of our approach to the development of our brands, product portfolios, distribution and sales effectiveness," said company chairman, Graham Mackay. "We have strengthened our local flagship brands, complemented by product innovation across a wide range of styles and prices.

"Margins have risen modestly despite higher input costs, as a result of our cost reduction and procurement initiatives," he added.

Looking forward, SABMiller warned that the rate of growth in the first half of its fiscal year will slow in H2 as it cycles the completion of acquisitions and "business combinations" from a year earlier.

For the company's official statement, click here.

To view a video interview with Mackay and CFO Jamie Wilson, click here.