LONDON (dpa-AFX) - SABMiller Plc (SAB.L, SBMRY.PK) reported Thursday a sharp rise in profit for the twelve months to March 31, as strong demand in Latin America and Africa more than offset weakness in Europe. The British brewer also saw 'good growth' in other developing markets such as India and China.
Group revenue rose 11 percent to $21.76 billion, which the company attributed to higher volumes, selective price increases and higher growth in premium brands.
The top line grew 7 percent on an organic, constant currency basis. SABMiller saw increases in both lager volumes and soft drinks volumes.
EBITA, a key bottom line earnings measure, grew 15 percent for both Latin America and Africa helped by volume growth and pricing.
EBITA for Europe dropped 6 percent due to lower volumes, adverse mix and increased raw material costs, the company noted.
In North America, EBITA grew by 2 percent despite lower sales. Pricing and continuous cost savings helped the growth, partly offset by higher raw material and distribution costs.
Asia Pacific EBITA soared 247 percent mainly due to the addition of Foster's. China and India were the key growth drivers.
Chairman Meyer Kahn stated, 'We continued to expand our global footprint with the acquisition of Foster's, the merger of our Russian and Ukrainian businesses with Anadolu Efes in exchange for a stake in the enlarged business, and the further development of our alliance with Castel.'
SABMiller's pre-tax profit for the year climbed to $5.6 billion from $3.6 billion in the previous year. Excluding exceptional items, adjusted earnings per share were 214.8 cents, compared to 191.5 cents per share in the preceding year.
The company noted that integration of Foster's is proceeding well, which started contributing to the company's results from mid December 2011. SABMiller completed the acquisition of Australia's Foster's Group Ltd. in December last year.
The board has also proposed a final dividend of 69.5 US cents per share, an increase of 13 percent from last year.
Looking ahead, the company expects trading conditions to remain broadly unchanged with further growth in developing markets, but it also expects unit input costs to rise.
Separately, SABMiller said its UK subsidiary, Miller Brands, has delivered lager volume growth of 8 percent, despite a declining UK lager market.
Much of this growth came from the premium portfolio, which has been a significant driver of World Beer's popularity in the UK. By 2014, World Beer could account for 20 percent of the UK beer sales, the company added.
SAB.L is currently trading at 2,396 pence, down 0.02 percent, on a volume of 286 thousand shares.
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