SABMiller's half-year figures were somewhat mixed, with emerging markets in a party mood but western markets losing their fizz.
Lager volumes in Europe were flat year on year – and down in many key markets – which SAB blamed on competitors' price promotions and faltering consumer confidence. The performance in North America was even worse, with a 4 per cent fall in volumes combining with rising commodity costs to put a 6 per cent dent in cash profits, despite the fact that the group has achieved annualised cost savings of $738m (£476m) on its MillerCoors joint venture.
However, the strength of emerging markets more than compensated, resulting in overall underlying pre-tax profit climbing 13 per cent. Latin America, Asia, and Africa all delivered strong volume growth and meant that, even though SAB held back on increasing prices, overall sales climbed 6 per cent on an organic basis. Latin America was the star performer, with benign economic conditions in the region translating into underlying volume growth of 8 per cent and a 16 per cent rise in cash profit, making it by far and away the biggest component of group profitability.
Broker Shore Capital expects full-year pre-tax profits of $4.7bn, giving EPS of 215¢ (from $4.1bn and 187¢ in 2011).
SABMILLER (SAB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,192p | MARKET VALUE: | £34.8bn | |
| TOUCH: | 2,192-2,193p | 12-MONTH HIGH: | 2,372p | LOW: 1,858p |
| DIVIDEND YIELD: | 2.4% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 1,359¢* | NET DEBT: | 29% | |
| Half-year to 30 Sep | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2010 | 9.45 | 1.69 | 71.2 | 19.5 |
| 2011 | 10.5 | 2.04 | 87.4 | 21.5 |
| % change | +11 | +21 | +23 | +10 |
Ex-div: 30 Nov Payment: 9 Dec *Includes intangible assets of $15.7bn, or 988¢ a share £1=$1.58 | ||||
