SAB grows market share and revenue
Business Day - Nov 18th 2011, 08:20
Despite flat lager volume growth and a decline in soft drink volumes in its home market, SAB still managed to grow turnover and market share in the six months ended September, the company said yesterday.
SAB group revenue grew 10% to $2,7bn in the period under review, from $2,4bn previously, factoring in the 7,5% excise increase on beer earlier in the year. "The growth was underpinned by continued efforts to strengthen the core brand portfolio, including intensifying investments in marketing and sales, largely funded by cost efficiencies," said SAB.
SAB chairman and MD Norman Adami said: "The consumer has come under pressure with high utility and fuel costs, while commodity prices have risen in the past few months. We have done well despite these conditions and have managed to grow market share."
Castle Lite grew almost 25%, which was compounded growth, he said. "It is much bigger than Amstel ever was."
Earnings before interest, tax and amortisation grew 13% to $446m, from $394m.
Lager volumes were level at 12,29-million hectolitres from 12,27-million the previous year. Soft drinks volumes fell 3%.
The CEO of parent company SABMiller , Graham Mackay, said the consumer economy had been somewhat softer in SA but the business was good and improving. "Our business, I think, there has performed well. It’ s at least holding share at the 89%-90% level; it’s competitiveness in many respects has been improved, sales execution continues to get better, customer loyalty scores look better and better," he said.
Mr Adami said SAB was cautiously optimistic over prospects.
SAB declared a 14% increase in the interim dividend of R36,91m, in respect of the shares held by the SAB Foundation, SAB Zenzele Employee Trust and SAB Zenzele Holdings.
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