SABMiller Overrides Distraction of AB InBev Deal to Report Strong Q4 Results

22 Apr 2016 --- SABMiller has reported a robust performance in the fourth quarter, with strong showings in Latin America and Africa helping offset a difficult start for new brew Miller Fortune in the US.

SABMiller, which is in the process of being acquired by AB InBev, updated the market on its trading with NPR (net producer revenues) growth of 8 percent in Latin America and 12 percent in Africa.

NPR growth in Q4 was weaker in Europe, three percent; North America, three percent and Asia Pacific, four percent.

In North America, beverage volumes were down one percent in Q4. Sales of MillerCoors to wholesalers were up one percent in the quarter but down two percent over the year. US domestic sales to retailers (STRs) were down one percent in the quarter.

Sales of Coors Light were down in the low single digits for the full year, though there was improvements in Q4 helped by marketing activity. Miller Lite showed growth in the second half of the year.

Sales of Miller Fortune, its new brew aimed at younger consumers, suffered a double digit decline but the fall was largely offset by the launch of Henry’s Hard Soda in the fourth quarter.

Its Blue Moon franchise and the Leinenkugel portfolio were up in the low single digits for the full year.

In Europe, a one percent decline in lager volumes was offset by soft drink volumes up by two percent.

One problem European market is Poland, where group NPR was down nine percent, as it was hit by fierce competition.

In the UK, there was a strong showing from its Peroni Nastro Azzurro brand which helped offset declines in Miller Genuine Draft and the Polish brand portfolio.

In Latin America, a standout performer was Colombia, with NPR growing by 11 percent, helped by unseasonably warm weather and selective price increases.

In Asia Pacific, a strong performance in Australia was led by Great Northern in the premium category, along with Peroni and Yak.

In Africa, NPR growth was helped by selective pricing and Castle Lite and Castle Milk Stout performed well.

Alan Clark, chief executive said: “We have had a strong year and increased momentum in the second half across all our regions notwithstanding economic volatility and the potential distraction of the AB InBev offer.”

“Our results reflect our strategy to expand the beer category and to grow and premiumise our diverse brand portfolios.”