Advertise with

SABMiller eyes tougher time in Europe, US
SABMiller eyes tougher time in Europe, US

SABMiller eyes tougher time in Europe, US


Fin24 - Nov 18th 2011, 08:01

London - Brewer SABMiller [JSE:SAB] narrowly missed forecasts with an 11% rise in half-year earnings on Thursday, and warned that trading in Europe and North America will stay tough as its input costs tick higher. 

The world’s No 2 brewer and maker of Miller Lite, Peroni and Grolsch earns over 80% of its profit from fast-growing emerging markets, and these expanding markets helped offset declining North American and European profits.

The London-based company reported adjusted earnings per share of 103.3 US cents for its half-year through September, below the forecast 103.9c from a company-compiled consensus and a ThomsonReuters I/B/E/S forecast of 103.5c.

Its half-year dividend was raised 10% to 21.5c.

“Economic and market environments in the USA and Europe are expected to remain difficult with generally favourable conditions elsewhere, particularly in Latin America and Africa,” CEO Graham Mackay said in a statement.

He added that raw material costs were expected to rise at a slightly faster rate in its second half and into the next year, but the group continued to expect the rise in its year to March 2012 to be in low single digits.

The brewer has been active on the deal front, agreeing to buy Australia’s Foster’s in September for $10.2bn, while the following month it swapped its Russian and Ukrainian business for a 24% stake in Turkish brewer Anadolu Efes.

Group revenue rose 10% to $15.7bn in the half year and operating profit or Ebita was up 10% to $2.7bn, while underlying beer volumes rose 3%.

Other brewers have seen mixed fortunes, with world No 1 Anheuser-Busch InBev gaining from a buoyant Brazil, while Europe-focused Heineken and Carlsberg have suffered from tough trading.  

Read more about: grolsch | peroni | miller lite | europe | us | brewer | sabmiller | liquor

Related News

How a US-China trade deal could benefit SA
11/11/2019 - 09:53
Africa is poised to become the “land of opportunity” for bond and equity investors should the US and China strike a trade deal, Bank of America (BofA) says.

Huawei upbeat about smartphone sales despite US bans
06/11/2019 - 09:34
Huawei expects smartphone shipments to grow 20% in 2020 even if it is blocked from the latest Google software, suggesting the Trump administration’s efforts to contain the company’s rise may not be working.

AB InBev reports weak results in "challenging" third quarter
01/11/2019 - 14:49
AB InBev, the world’s largest brewer, reported weaker-than-expected third-quarter profit and sales, due to higher cost of sales, marketing investments and price increases in two major markets, South Korea and Brazil.

AB InBev revives its offering for Apac in Hong Kong
01/10/2019 - 11:39
Anheuser-Busch InBev (AB InBev) has revived its failed initial public offering (IPO) in Hong Kong by offering 1.26 billion shares of a minority stake of its Asia Pacific subsidiary, Budweiser Brewing Company Apac, and the world’s largest brewer is hoping to raise $5 billion (R74.4bn) on listing.

Distell waits for tribunal ruling
16/09/2019 - 10:03
Local alcoholic beverages company, Distell Limited, will have to wait for the Competition Tribunal’s decision whether or not global beer brewer Anheuser-Busch (AB) InBev and SABMiller plc (SAB) have breached their merger conditions by striking exclusive deals with outlets.