SAB Miller global beer volumes slightly up

18/01/06 Following the summer peak season in South Africa, SABMiller plc today issued its trading update for the group’s third quarter and for the nine months ended 31 December 2005.  The calculation of the organic growth rates included below excludes volumes for Bavaria SA which became part of the group in October 2005.

The group’s organic lager volume growth for the third quarter was 1.8%, and 4.5% for the year to date. Volumes were impacted by cool and wet weather during December in South Africa, and South Africa Beverages achieved a marginal increase in beer volumes during the quarter, cycling the 4% growth reported in the prior year’s third quarter. Underlying economic performance and consumer confidence in South Africa remain positive, contributing to further mix improvements. In South Africa, year to date beer volumes are up 1.8% on a comparable basis. Soft drink volumes were also impacted by the December weather, and a 4% increase was recorded in the quarter, with year to date growth of 7%.

Miller’s third quarter domestic sales to retailers (STRs) were 1.0% below prior year when adjusted for the reduced number of trading days in the quarter (down 2.5% unadjusted) in a market that was characterized by intense competitive pricing pressure.  For the year to date, Miller’s domestic STRs declined 0.4% (0.9% unadjusted). Despite strong prior year comparables, retail sales of flagship brand Miller Lite have continued to grow.

The transaction with Bavaria SA closed on 12 October 2005. On a pro forma basis, South America lager volumes for the three months to 31 December 2005 were some 7% above the prior year, in line with our expectations at the time of the transaction. This performance reflects continuing growth in Colombia and robust growth in Peru, despite including two fewer public holidays over the Christmas period in the current year.

In Central America, carbonated soft drink volumes were up 6%, and 4% year to date, with growth being achieved in both countries.  Beer volumes were 7% lower in the quarter, consistent with year to date trading, principally as a result of the excise increase in El Salvador. 

In Europe, organic lager volume growth for the third quarter was 4%, in line with the year to date, influenced by continuing good performances from Poland, Russia and Romania.

Lager volume growth was recorded in both Africa and Asia, and overall a 12% organic increase on a comparable basis was delivered, in line with year to date, following strong growth in China.