SABMiller revenues up 4% but dollar fluctuation dents performance

SABMiller’s group net producer revenue has risen by 4% after a strong second quarter, but dollar fluctuation caused the company some issues.

The beer and soft drink producer released its trading update for the six months to 30 September on Tuesday, ahead of schedule due to a possible offer from AB Inbev.

A bid for the brewing company is expected to be lodged this week, according to The Telegraph.

On a constant currency basis, revenue for the quarter grew 6% after strong results in Africa and Latin America, as well as overall beverage volume growth of 2%.

However on a reported basis, it declined by 9% for both the half and the quarter due to the impact of the company’s key operating currencies against the dollar.

The company reported that despite challenging market conditions, there were relative solid performances in the USA, Australia and parts of Europe.

Performance in Poland was weak due to continued competitor price positioning, leaving Europe’s net producer revenue growth flat for the half-year.

The company also reported that while subsidiary lager volumes grew by 3% for the half, tough macroeconomic and trading conditions caused slower volume growth by SABMiller’s partners, resulting in overall group lager volumes for the half being in line with the previous year.

Soft drink volumes were up 4%, spurred on by good performances in Latin America and Africa.

SABMiller chief executive Alan Clark said the company’s growth has been underpinned by the company’s unmatched footprint in the growing beer markets of the world.

“We continued to drive strong growth in Africa and Latin America, applying our deep local expertise to markets with favourable long term structural growth dynamics.

“Particular highlights were our very strong lager volume growth in these regions, together with double digit net producer revenue growth in the second quarter in Africa.”