LONDON (dpa-AFX) - British brewer SABMiller Plc (SAB.L, SBMRY.PK) reported Tuesday that its financial performance is in line with expectations, with an increase in net producer revenue for the fourth quarter and fiscal year at an organic, constant currency basis. Meanwhile, the reported results would be negatively impacted by the depreciation of key currencies against the US dollar. SABMiller shares declined around 3 percent in the morning trade in London.
In its trading update for the year ended March 31, the company said its fourth-quarter Group net producer revenue or NPR grew 2 percent and group NPR per hectolitre or hl increased 1 percent, both on an organic, constant currency basis. Organic growth rates excludes the impact of acquisitions and disposals.
On an organic, constant currency basis, full-year Group NPR advanced 3 percent and group NPR per hl grew 2 percent. Total beverage volumes rose 2 percent with lager volumes up 1 percent and soft drinks volumes rising 5 percent.
Chief Executive Alan Clark said, '.... The combination of our global overview and deep local insights enables us to fine tune our operations in each market and to deliver commercial progress, which underpins our confidence in our ability to deliver higher revenue growth in the longer term.'
On an organic, constant currency basis, Latin American group NPR increased 5 percent in the year, with a 3 percent rise in beverage volumes and 1 percent growth in lager volumes, despite difficult trading conditions.
In Europe, group NPR for the full year was in line with the prior year with an improved growth trend in the fourth quarter. On an organic basis, total volumes were down 1 percent as lager volumes were hurt by poor weather in key markets in the fist half, which had a particular impact on innovation launches.
Domestic lager volumes in the UK were up 5 percent with strong performance from Peroni Nastro Azzurro.
In North America, MilllerCoors' group NPR was flat as lower volumes were offset by improved group NPR per hl. MillerCoors LLC is a joint venture between Molson Coors Brewing Co. (TAP, TPX.TO) and SABMiller.
In Africa, Group NPR for the fiscal year grew 5 percent, driven by total volume growth of 5 percent.
Asia Pacific group NPR grew 4 percent for the year, driven by 17 percent increase in China, despite continued category and competitor pressure in Australia.
Further, SABMiller said it is reviewing strategic options for its 39.6 percent shareholding in Tsogo Sun Holdings Limited, however, there can be no certainty that the review will result in SABMiller taking any action. The trading value of SABMiller's shareholding is approximately $1.042 billion. The company said this investment is not considered to be core to its beverage operations.
In London, SABMiller shares are currently trading at 3,042.50 pence, down 81.50 pence or 2.61 percent.
Copyright RTT News/dpa-AFX