SABMiller Revenue Hurt by Weaker Emerging-Market Currencies
October 06 2015 - 3:18AM
Dow Jones News
By Ed Ballard
LONDON-- SABMiller PLC on Tuesday reported a fall in
second-quarter revenue, even as sales volumes rose, as currencies
in emerging markets where the brewer makes most of its sales
weakened.
The maker of Peroni Nastro Azzurro, Pilsner Urquell and Grolsch
said net producer revenue--a metric that strips out excise
taxes--fell 9% in the second quarter. The company issued a trading
update earlier than scheduled because of the recent takeover
approach from larger rival Anheuser-Busch InBev NV.
SABMiller said revenue would be weaker because of the "continued
depreciation of our key operating currencies against the U.S.
dollar."
Stripping out currency moves, sales in the three months to Sept.
30 rose 6% from the comparable period a year earlier, driven by 9%
growth in Latin America and 11% in Africa. Sales for the first six
months of the financial year were up just 2%, reflecting a
second-quarter improvement.
"Growth accelerated in the second quarter of the year,
underpinned by our unmatched footprint in the growing beer markets
of the world," said chief executive Alan Clark.
"While adverse currency movements have materially impacted our
reported results, we have a strong business with exceptional long
term prospects, " Mr. Clark added.
AB InBev launched its effort to buy SABMiller and create a
global brewing behemoth on Sept. 16. No financial terms were
mentioned.
SABMiller has said it is considering how to respond to any
formal offer from AB InBev, which has until Oct. 14 to bid or walk
away for at least six months.
Write to Ed Ballard at ed.ballard@wsj.com
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(END) Dow Jones Newswires
October 06, 2015 03:03 ET (07:03 GMT)
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