SABMiller Hit by Weaker Emerging-Market Currencies

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 03:25 ET (07:25 GMT)

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