SABMiller continues to grow in tough environment

Guy Bentley
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Foster's brewer SABMiller has reported a rise in net producer revenue of three per cent for the year to 31 March.

The company's trading statement showed total beverage volumes grew two per cent for the year, with lager up one per cent and soft drinks up five per cent.The company said it had continued to deliver top line growth despite headwinds and a difficult fourth quarter.

"The combination of our global overview and deep local insights enables us to fine tune our operations in each market," said chief executive Alan Clark.

SABMiller saw solid growth in the Latin American market while net producer revenue in Europe was on target despite tough market conditions. Looking ahead, foreign exchange weakness, excise increases and regulatory changes could prove difficult challenges for the FTSE 100 company.

However, analysts at City broker Numis remained optimistic:

We remain positive on the medium term growth opportunities in Emerging Markets, turnaround potential in Europe and for further value-creating M&A. However, in the near term, concern over the impact of weakening Emerging Markets and adverse currency movements seem likely to weigh.