SABMiller reports strong progress

Global brewer, SABMiller, has reported group revenue growth up 10%, lager volumes rose 3% for the year to March 31 and the integration of the Foster’s business is ahead of schedule 

Group revenue is up to US$34.4 million, EBITA (earnings before interest, taxes and amortisation) is +14% at $6.4m, but profit before tax is down 16% to $4.7m, that is due to the group’s exceptional gains.

Acting chairman, John Manser, said: “I am delighted to report another year of significant progress and strong results for the group. Through a combination of innovation, effective brand development and good commercial execution we continued to develop the beer category and widen the appeal of our products. Strong growth in our developing markets was supported by investments in additional capacity, commercial capability and distribution reach. Group revenue grew by 10% and the focus on operating efficiencies helped us achieve growth in profit margins.”.

The report states: “The group delivered a strong financial performance achieving growth across a number of its businesses, led by its developing market operations in Africa, Latin America, Asia Pacific and South Africa. Total beverage volume growth of 4% on an organic basis was driven by new product innovations and expansion of brand portfolios, supported by significant investments in new capacity, particularly in Africa. Revenues grew ahead of volumes following selective price increases and a continued focus on expanding our portfolio up and down the price ladder. Following the Foster’s acquisition, the business integration plan in Australia is ahead of schedule and showing positive early signs with the continuing brand portfolio returning to growth in the final quarter," it says

"Group revenue grew by 10%, including business combinations and currency translation, with organic, constant currency growth of 7%. Currency movements had an adverse impact of five percentage points on reported group revenue growth mainly due to the weakening of the South African rand and Central European currencies against the US dollar," the report states