SABMiller has reported group beverage volumes increasing by 2%, with lager volumes up 1% and soft drinks volumes up 6%, for the year to 31 March.
Group net producer revenue was up by 5%, with group NPR per hl growing 3%
EBITA grew by 8% and EBITA margin increased by 60 basis points.
Alan Clark, chief executive of SABMiller, said: “These are good results. We grew EBITA across all regions and our group EBITA margin improved through the year, on an underlying basis. This performance reflects our focus on driving superior growth by strengthening our core brands, expanding the beer category to reach more consumers on more occasions and placing an emphasis on premiumisation in all regions. As noted through the year, the strengthening dollar against our operating currencies had a material negative impact on reported results.
“Our affordability and premiumisation initiatives have allowed us to capture growth in developing markets and key trends in developed markets. Our subsidiaries achieved volume and NPR growth of 5% and 8% respectively, with a particularly good performance in a number of key markets. Premium lager brands’ NPR grew by 11%[10], while global lager brands’ NPR grew by 13%10, with growth across all regions. Our growth accelerated in the year, driven by improving momentum in Latin America, continued strong and well-balanced momentum in Africa and improvements in Australia and Europe in the second half.
“In creating a more integrated global business we have been able to cut costs and free up in-market resources to deliver on our strategic objectives. We continue to focus on improving our in-country performance in a cost efficient manner, supported by our global cost and efficiency programme which is ahead of schedule and delivered cumulative net annualised savings of US$547 million by the year end. The programme is on track to achieve our 2020 target of US$1,050 million[11]. These initiatives mitigated adverse transactional currency headwinds.
“We are expanding our exposure to growing markets and building the optimum portfolio of lager, soft drinks and other alcoholic beverages to capture growth. Soft drinks volumes grew by 6%. On 10 May 2016, the South African Competition Tribunal approved, with agreed conditions, the formation of Africa’s largest soft drinks beverage operation, Coca-Cola Beverages Africa (CCBA). We expect the transaction to complete as soon as practicable.
“Achieving these results this year, notwithstanding economic and currency volatility and the distraction of the AB InBev offer, is a testament to the dedication and hard work of our people.”
On the Ab InBev acquisition, the group said: “We are continuing to support AB InBev in obtaining the necessary regulatory clearances for the recommended acquisition of SABMiller by AB InBev, and in convergence planning for post change of control.
“Significant progress has been made to date, and AB InBev continues to work with the relevant authorities around the world in seeking to bring all regulatory reviews to a timely and appropriate conclusion.
“Subject to the satisfaction or waiver of the pre-conditions set out in the Rule 2.7 announcement on 11 November 2015 and to the other terms and conditions to the transaction, the parties continue to expect to convene the necessary shareholder meetings to approve the transaction and to seek UK court approval of the transaction and to take the other necessary steps to complete the transaction during the second half of 2016, but do not anticipate completion occurring before the payment of the final dividend in respect of the financial year ended 31 March 2016 to SABMiller shareholders on 12 August 2016.”
On the outlook, the company said: “We expect to deliver good underlying performance in the year ahead. Our cost and efficiency programme is on track to reach targeted annualised savings of US$1,050 million per annum by the financial year ending 31 March 2020. We anticipate that we will continue to face foreign exchange volatility and the results of certain of our key operations would be impacted by currency depreciation against the US dollar.”
