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SABMiller Growth in Lager Volumes Over 11 Percent |
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Monday, 24 September 2007 |
LONDON: SABMiller PLC reported organic growth in lager volumes of over 11 percent for the 5 months ending in August, driven by business in Africa, Asia, Latin America and Central and Eastern Europe.
In North America, Miller's domestic sales to retailers (STRs) rose by 1.3 percent with Miller Lite STRs up by 1.7 percent, adding it expects over 50 basis point margin improvement this year.
The company added that the reintroduction of the Amstel brand in South Africa following the contract termination earlier this year appears to have been delayed, limiting the expected financial impact to 40-50 million USD in the current year.
During March, the company lost its licence to produce Heineken's Amstel brand -- with 9 percent market share -- in South Africa and had estimated that the termination of the agreement will result in the loss of around 300 million usd in revenues and around 80 million usd in EBITA in full years 2008 and 2009.
Looking ahead, the world's second largest brewer said it continues to drive strong volume growth in Europe and expects a significant potential for growth in Latin America.
SABMiller's Africa & Asia operations are also growing rapidly while in China, company's joint venture has become the country's leading brewer and its main brand, SNOW, is also the country's largest lager brand with a 10 percent share of the market.
In India, where the group's market share is approaching 35 percent, the recent acquisition of the Foster's brand is driving excellent growth in its mild beer portfolio.
The company reiterated its confidence in the group's future growth prospects.
SABMiller said it is investing in significant additional capacity and extending distribution to further extend its growth and leadership across the African continent.
Copyright 2007 AFX News Limited. All Rights Reserved.
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