Sat Oct 22 15:26:54 SAST 2016

SABMiller's spirits soar in response to glowing results

By unknown | May 18, 2007 | COMMENTS [ 0 ]

Robert Laing

Robert Laing

South African and South American beer drinkers helped SABMiller to beat ana-lysts' expectations de-spite a 17percent dive in North American profits.

Overall revenue grew 22percent to $18,6billion for the year ended March. Shareholders will receive a dividend of 50 US cents, 14percent up from the previous financial year.

SABMiller's results include a regional breakdown by earnings before interest, taxes, depreciation, and amortisation (EBITDA).

The world's third largest brewer still depends on South Africa for a third of its total profits.

Heineken's decision to no longer allow SABMiller to represent its brand in South Africa in retaliation for SABMiller competing against it in Latin America cost the group $80million at the EBITA level this year, the results statement said. Losing Heineken is expected to lose SABMiller about the same amount again this year.

"While we face some challenges, including increasing commodity cost pressures and the need to rebuild our share of the premium segment in South Africa, we expect the group's underlying progress of recent years to continue," the company said.

Mainstream beer volumes were mar-ginally lower than the previous year despite renewed growth in Hansa and Castle Milk Stout.

Much of SABMiller's local growth came from the growing popularity of flavoured alcoholic beverages.


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