SABMiller beer rise beats forecasts

LONDON – Global brewing giant SABMiller Plc said yesterday its first-half worldwide underlying beer volumes rose a higher-than-expected nine per cent and said its financial performance was in line with its own expectations.

SABMiller, the world’s second biggest brewer and maker of Castle, Miller Lite and Peroni, said the first-half (April-September) figure excluded South American brewer Bavaria, which it purchased in October 2005. The London-based group issued the trading statement prior to its half-year results in November.The nine per cent first-half rise compares with a seven per cent first-quarter increase and a five per cent jump in global volumes in the year to March 2006.In South America, where it bought Bavaria for US$7,8 billion, beer volumes rose 11 percent after a first-quarter nine per cent rise.The region, which brews Aguila in Colombia and Cristal and Cusquena from Peru, earns 22 per cent of group profit.In North America, where it brews Miller Genuine Draft and Milwaukee’s Best, sales to retailers fell 3,6 per cent after a first-quarter 2,4 per cent fall and one per cent dip the previous year, with Miller Lite volumes down marginally in the half-year.North America accounts for around 14 per cent of group profit.In its South African beer business, which brews Carling and Hansa as well as Castle and earns 31 per cent of group profits, first-half volumes were up almost one per cent after a first-quarter three per cent rise and a one per cent rise in the year to March 2006.The brewer said its first-half volumes rose eight per cent in Europe, where it brews Pilsner Urquell, Tyskie and Ursus, after a six per cent first-quarter rise and five per cent in the previous year.Consumption was boosted during the summer’s football world cup, while Russia grew over 20 per cent.Its Africa and Asia region showed beer volumes up over 20 per cent in the first half after a first-quarter rise of 19 per cent and 17 per cent the previous year, with strong growth of over 25 per cent in China where it brews Snow and Blue Sword.SABMiller shares have recovered from a year low in mid-June of 910 pence but continued South African rand weakness against the US dollar has slowed their rally and the shares ended Wednesday at 10,35 pounds, well off their April high of 12,23 pounds.SABMiller makes over a third of its earnings in rand from beer and soft drinks and has seen the South African currency devalued by 25 per cent against the dollar so far this year.Nampa-APThe London-based group issued the trading statement prior to its half-year results in November.The nine per cent first-half rise compares with a seven per cent first-quarter increase and a five per cent jump in global volumes in the year to March 2006.In South America, where it bought Bavaria for US$7,8 billion, beer volumes rose 11 percent after a first-quarter nine per cent rise.The region, which brews Aguila in Colombia and Cristal and Cusquena from Peru, earns 22 per cent of group profit.In North America, where it brews Miller Genuine Draft and Milwaukee’s Best, sales to retailers fell 3,6 per cent after a first-quarter 2,4 per cent fall and one per cent dip the previous year, with Miller Lite volumes down marginally in the half-year.North America accounts for around 14 per cent of group profit.In its South African beer business, which brews Carling and Hansa as well as Castle and earns 31 per cent of group profits, first-half volumes were up almost one per cent after a first-quarter three per cent rise and a one per cent rise in the year to March 2006.The brewer said its first-half volumes rose eight per cent in Europe, where it brews Pilsner Urquell, Tyskie and Ursus, after a six per cent first-quarter rise and five per cent in the previous year.Consumption was boosted during the summer’s football world cup, while Russia grew over 20 per cent.Its Africa and Asia region showed beer volumes up over 20 per cent in the first half after a first-quarter rise of 19 per cent and 17 per cent the previous year, with strong growth of over 25 per cent in China where it brews Snow and Blue Sword.SABMiller shares have recovered from a year low in mid-June of 910 pence but continued South African rand weakness against the US dollar has slowed their rally and the shares ended Wednesday at 10,35 pounds, well off their April high of 12,23 pounds.SABMiller makes over a third of its earnings in rand from beer and soft drinks and has seen the South African currency devalued by 25 per cent against the dollar so far this year.Nampa-AP