Asian demand for beer boosts SABMiller profit
KEEN drinkers in emerging markets have boosted the world’s second-largest brewer SABMiller’s profits by 75 per cent to $4.2bn (£2.68bn).
The annual results, which include a one-off gain from the sale of SABMiller’s Russian and Ukrainian operations, saw revenues grow by 11 per cent to $31.38bn and pre-tax profits climb 55 per cent to $5.6bn.
The financial results were driven by strong trading in the emerging markets as conditions in Europe continued to decline.
Lower volumes and higher raw material costs dragged earnings in Europe down by nine per cent to $836m.
Asia Pacific and Africa saw the biggest growth, increasing income by 30 per cent and 16 per cent respectively to $321m and £743m.
But Latin America remained SABMiller’s largest income driver, growing sales by 14 per cent to $1.86bn.
The drinks company said this reflected a combination of higher volumes, selective price increases and manufacturing efficiencies.
But amid difficult conditions in Europe, the UK held its head high. Miller Brands, its UK subsidiary, saw an eight per cent lager growth compared to a 2.8 per cent market decline.
Miller Brands managing director Gary Haigh told City A.M., “Our best performing beers were Peroni, Pilsner Urquell and Kozel, which all grew by double digits during the year.
“World Beers and Specialities are doing particularly well, which reflects life in general – we’ve become more discerning about our wine, our fashion, our food and also our beers.”