SABMiller performance in line with expectations

Chief executive of SABMiller Graham Mackay said lager volumes for the quarter were level with the prior year on an organic basis while soft drinks volumes were 2% ahead, driven by strong sales in Africa.

"The global economic slowdown has continued to dampen consumer demand, although the impact on volumes has varied between our markets.

"Across the group, revenue benefited from firm pricing in the prior year, and we continued to focus on cost efficiencies and, in certain markets, restructuring activities in order to reduce our cost base.

"Financial performance for the quarter was in line with our expectations," he said.

The brewer pointed to lager volume growth of 11% on an organic basis for the quarter in Africa and Asia.

In Africa, lager volumes were 4% ahead of the prior year with strong performances in Uganda and Zambia, and the group's associate Castel.

Sales in Botswana were impacted by the 30% social levy on alcohol, with lager volumes declining by 41%.

"Soft drinks sales in Africa grew 12% on an organic basis with good volumes from Castel and improved supply and production in Angola.

"China's organic lager volumes grew 17% in a resilient economy, led by a strong performance in the Central region and further national market share gains for the Snow brand," SABMiller said.

"In South Africa, the market grew by some 2% benefiting from the Easter peak trading period in the current year.

"The underlying market continues to be affected by weakening consumer demand, rising unemployment and constraints on the sale of alcoholic beverages in the Western Cape.

"Our lager volumes were down 2% as we lost market share, principally in the premium segment," Mackay said.

Soft drinks volumes were in line with the prior year.

In Latin America, lager volumes for the quarter were level with the prior year.

"Panama grew lager volumes 10%, although losing share in a rapidly growing market.

"Tough economic conditions, a major earthquake and the current political turmoil all combined to drive a 13% decline in lager volumes in Honduras.

"Soft drinks volumes in the region were 1% below the prior year on an organic basis," SABMiller said.

In Europe, lager volumes were 7% below the prior year on an organic basis as household debts, tighter credit control and rising unemployment continued to depress consumer spending and resulted in beer market contraction across the region, the group said.

Poland's lager volumes were down 8% on an organic basis with an excise increase, double-digit food inflation and bad weather all significantly impacting the beer market, it added.

"However, strong brand equities drove market share growth.

"Czech Republic domestic lager volumes declined 4% with a fall in on-trade consumption reflecting a soft local economy, reduced tourism and bad weather.

"Our volume market share was marginally down as we continued to focus on driving our premium brands. In Russia, lager volumes fell 9% but market share remained level.

"In Romania, lager volumes were down 3% against a strong prior year comparative growth of 22%," the group said.

"We continued to grow share and achieved market leadership, in a market, which declined 9%.

"In the United Kingdom, Peroni Nastro Azzurro delivered double-digit growth in a market down 6%," SABMiller said.

In the three months to 30 June 2009, MillerCoors U.S. domestic volume sales to retailers ("STRs") were down 0.8% against the prior year on a pro forma basis, the brewer said.

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