SABMiller Q3 Revenue Up, But Volumes Down On Weak China
British brewer SABMiller Plc. Wednesday reported higher group net producer revenue for the third quarter, but lager volume was down 1 percent, reflecting continuing volume weakness in China and in U.S. shipments.
In a trading update for the third quarter, the firm said group net producer revenue or NPR for the quarter grew by 4 percent, with group NPR per hectolitre growth in all regions.
The company said lager volume was down 1 percent, reflecting continuing volume weakness in China and in US shipments.
SABMiller experienced continuing growth in soft drinks across the group, with volumes up 4 percent in the quarter.
Alan Clark, CEO, said, "We continued to drive steady net producer revenue growth, notwithstanding varied local market performances, as we benefited from the breadth of our global portfolio of businesses.
During the quarter, our Latin America and Africa businesses continued to grow both volumes and revenues, together with Europe, while more difficult trading conditions, particularly in China, held back the overall group performance."
In Latin America, group NPR grew by 5 percent in the quarter and beverage volumes advanced by 2 percent. Soft drink volumes rose 4 percent, driven by the non-alcoholic malt brands, and lager volumes were up 1 percent.
Group NPR in Africa increased 7 percent, driven by beverage volume growth of 4 percent, together with pricing and continued improvement in the premium category. Lager volumes increased by 3 percent, and soft drinks volumes grew by 5 percent.
In Asia Pacific, group NPR declined by 2 percent. The beverage volume decline was 7 percent, which was partially offset by group NPR per hectoliter growth of 6 percent, reflecting the impact of changes in geographic mix.
In China, group NPR declined by 7 percent driven by a volume decline of 9 percent. There were double digit declines in the northeast and central provinces with the continuing impact of the previous quarter's adverse weather conditions in key regions. Group NPR per hecto liter growth of 2 percent was driven by favorable brand mix due to the strong growth in premium lager volumes.
In Europe, group NPR grew by 3 percent, driven by beverage volume growth of 2 percent and lager volumes also up 2 percent.
In North America, group NPR declined 1 percent, reflecting a 1 percent decline in MillerCoors' group NPR. MillerCoors' volumes were lower, but this was partially offset by higher net pricing and favourable brand mix.
The stock gained 0.8 percent in early trade to 3,369.00 pence. (dpa)
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