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SABMiller Sales Up Despite European Challenges

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SABMiller Sales Up Despite European Challenges

SABMiller has reported a rise in third-quarter revenues and volumes in a trading update released yesterday (22 January). The brewer saw sales increase by 8 per cent on an organic basis in the three months to the end of December, with lager volumes up 2 per cent and is growing soft drinks business increasing volumes by 3 per cent, both on an organic basis.

On a reported basis, including the effect of acquisitions and disposals, total volumes were up 6 per cent and group revenue was up 17 per cent, bringing the results "in line" with group expectations, although no details were given.

Europe remained challenging, with lager volumes rising 1 per cent on an organic basis and single digit growth in some markets. While volumes in Poland and the Czech Republic were down 2 per cent and 11 per cent, respectively, Romania showed strong growth of 23 per cent.

The third quarter provided 6 per cent growth in lager volumes in Latin America, and 8 per cent in Central America. Soft drinks volumes in the Latin American market also rose, with growth of 5 per cent.

The group cited bad weather as the reason for the 3 per cent decline in China, while overall lager volumes in Asia Pacific (excluding Australia) declined by 1 per cent on an organic basis. A strong performance in India delivered an 18 per cent volume rise, compensating somewhat for the 15 per cent decline in Australia, including discontinued brands.

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In Africa lager volumes grew by 4 per cent on an organic basis, with growth of 10 per cent in Zambia. The group's soft drinks business performed well in the region, reporting a 12 per cent increase, on an organic basis.

MillerCoors domestic sales to retailers declined 1.1 per cent in the quarter on a trading day adjusted basis and domestic sales to wholesalers were down 1.4 per cent in the quarter.

Additionally, the group announced the sale of its non-core milk and juice business in Panama to La Cooperativa de Productores de Leche Dos Pinos R.L. for a cash sum of $86 million. The sale by SABMiller's Panama subsidiary Cervecería Nacional said the deal will allow the company to focus on its beer and carbonated soft drinks business. (23 Jan)

© 2013 - ESM: European Supermarket Magazine by Ben Webb

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