SABMiller sales slow in second quarter

Top line growth became flatter in the second quarter at SABMiller due to a decline in lager volumes and weakness in China and Australia, with results also likely to be hit by currency headwinds.

For the six months to 30 September, group net producer revenue (NPR) grew by 5% at a constant currency basis, as it slowed to 3% in the second quarter from 6% in the first, although growth in group NPR per hectolitre (hl) was maintained at 3% with a stronger showing in the second quarter.

Chief executive Alan Clark emphasised that it was a resilient revenue performance, powered by the Africa and Latin America businesses where both lager and soft drinks were strong.

These two regions grew NPR 10% and 7% and, even with pricing increases at both, helped group organic beverage volumes grow 1% for the first six months.

"Our total beverage volume growth was impacted by weaker lager volume performance in the second quarter, balanced by strong growth in soft drinks" said Clark.

"Financial performance has been affected by ongoing foreign currency movements as well as weaker second quarter trading conditions in China and Australia."

A further top-line fall in Australia was blamed on low consumer sentiment, while softening second quarter lager volumes in China and Europe were attributed to poor summer peak weather following growth in the first quarter.

NPR declined 3% in the second quarter in Asia Pacific and volumes 8%, while in Europe NPR was down 2% and volumes 1%.

North American NPR was up 1% despite a 2% weakening in volumes thanks to higher net pricing and positive sales mix.