Shares in global brewer SABMiller surged 5 per cent to an all-time high as strong volume growth in emerging markets offset weakness in more mature regions, and profits were boosted by lower raw material costs, hedged at the bottom of the cycle, and continuing merger benefits in its North American MillerCoors joint venture.
Price rises pushed through a year earlier also helped the group increase underlying revenues 4.5 per cent, despite continuing economic weakness and duty increases in many markets. Europe was particularly hard hit by the resultant down-trading, with lager volumes down 5 per cent across the region despite an impressive 25 per cent increase in UK volumes, led by premium brands such as Peroni.
However, weakness in developed markets was also more than offset by good volume growth in Africa and Asia. In China, where SAB is leading consolidation of its fragmented brewing industry, volumes climbed 10 per cent, led by the group's Snow brand, which now has 20 per cent market share there. But better distribution and the introduction of more affordable local brands meant growth in Africa was even faster
Broker RBS expects full-year underlying pre-tax profits of $2.98bn and EPS of 181¢ (from $2.93bn and EPS of 160¢ last year), rising to $3.5bn and 209¢ in the year to March 2012.
SABMILLER (SAB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,144p | MARKET VALUE: | £34.0bn | |
| TOUCH: | 2,144-2,145p | 12-MONTH HIGH: | 2,144p | LOW: 1,638p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 1318¢* | NET DEBT: | 37% | |
| Half-year to 30 Sep | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2009 | 8.85 | 1.50 | 63.0 | 17.0 |
| 2010 | 9.45 | 1.69 | 71.2 | 19.5 |
| % change | +7 | +13 | +13 | +15 |
Ex-div: 1 Dec Payment: 10 Dec *Includes intangible assets of $16.4bn or 1037¢ a share £1=US$1.60 | ||||
