SABMiller Revenue, Volumes Rise In Q3

British brewer SABMiller Plc (SAB.L,SBMRY.PK) Tuesday said its third-quarter revenues climbed 17 percent from last year, citing selective price increases as well as improved brand mix in most of the regions. Total volumes for the period were up 6 percent that includes acquisitions and disposals. SABMiller stated that its overall financial performance was in line with its expectations.

In a trading update for the third quarter ended December 31, the company said its revenue rose 8 percent from the previous year on an organic constant currency basis. Revenue per hectolitre improved 5 percent from a year ago.

On an organic basis, lager volumes for the quarter increased 2 percent from last year, and soft drinks volumes were up 3 percent. Organic growth rates excludes effects of acquisitions and disposals.

Latin America showed improved growth, with lager volumes increasing 6 percent from the prior year. In Central America, the volumes were up 8 percent, particularly due to performance in its premium brands in Panama.

In Europe, lager volumes improved 1 percent on an organic basis, while some beer markets were impacted by depressed consumer confidence, the company said. Its associate, Anadolu Efes, showed total volume growth of 5 percent on a pro forma basis, with a 7 percent pro forma decline in beer. But, this was more than offset by 24 percent growth in soft drinks.

MillerCoors domestic sales to retailers declined 1.1 percent on a trading day adjusted basis and domestic sales to wholesalers were down 1.4 percent from the preceding year.

In Africa, lager volumes grew by 4 percent on an organic basis, with continued strong growth in most markets. In South Africa, lager volumes improved nearly 3 percent, despite a challenging economic and trading environment, SABMiller stated. Soft drinks volumes declined around 3 percent.

In Asia Pacific, lager volumes decreased about 1 percent on an organic basis, excluding Australia volumes. Volumes in China dropped 3 percent, mainly due to an exceptionally cold and wet winter across the country.

In addition, SABMiller said it used the net proceeds from the issue of notes in December to repay in part its bank borrowings incurred to finance acquisition of Foster's in December 2011. In London, SABMiller shares are currently trading at 2,989.5 pence, up 0.98 percent, on a volume of 586,458 shares.

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by RTT Staff Writer

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