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Thursday, January 21, 2016

SABMiller beats expectations for sales and revenue

LONDON — SABMiller, the brewer being bought by Anheuser-Busch InBev in the industry’s biggest acquisition, reported a gain in third-quarter sales on strong demand in Latin America and Africa.

So-called organic lager volume advanced 3% in the three months through December, the London-based maker of Pilsner Urquell and Castle lagers said on Thursday.

Analysts had expected a 1.1% gain, according to the median of estimates compiled by Bloomberg.
The measure excludes the effect of acquisitions and currency shifts.

SABMiller last year doubled its goal for cost reductions to $1.05bn by 2020 as it seeks to match the profit margins of its suitor. AB InBev later said it was aiming for an additional $1.4bn in annual savings as it combines the world’s biggest brewers. AB InBev plans to divest SAB’s Peroni and Grolsch brands in Europe, attracting the interest of companies such as Asahi Group Holdings.

"Our reported results are materially impacted by the significant depreciation of our key operating currencies against the dollar but the underlying performance we are reporting today reflects the strength of our business and the dedication of our people," CEO Alan Clark said in the statement.
Net producer revenue rose 7%. Analysts expected a 5.5% gain.

AB InBev agreed in November last year to acquire SABMiller in a deal currently valued at about $102bn. Large brewers are consolidating to cut costs as consumers in Europe and North America shift from mass-market beer to smaller independent brands.

Bloomberg

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