SABMiller’s fourth quarter sales improve as China rebounds

As if to counter the analysts’ currently divided opinion whether to hold on to SABMiller’s shares or sell them, the world’s second-biggest brewer, reported on 16 April 2015 that lager volumes were up 2 percent on an organic basis in the three months ended 31 March 2015. Soft drinks volume grew 8 percent in the quarter. This increase came on the back of growing consumption in Africa, Latin America and a rebound in China.

Lager volumes in China returned to growth in SABMiller’s fourth quarter, having earlier suffered from adverse weather in the peak summer months.

However, domestic sales to retailers fell 2.3 percent for the full year in the U.S., where SABMiller has a joint venture with Molson Coors.

SABMiller reported overall organic revenue growth of 4 percent for the full year ended 31 March 2015 on a constant currency basis.

It said, however, that depreciation in key currencies against the U.S. dollar would hurt its full-year results, which are scheduled for release on 13 May 2015.

Reports say that SABMiller is struggling with a rising dollar and a slowdown in Asia, as it has the largest exposure to emerging markets of any global brewer. Chief Executive Officer Alan Clark is looking to increase sales in its home market of Africa, and expand its soft-drink business to offset sluggish growth of lagers.

“Our top-line performance was strong in the final quarter, driven by double digit revenue growth in Africa and sustained growth in Latin America,” Mr Clark said in the statement. “Asia Pacific also returned to growth during the last three months of the year as lager volumes in China returned to growth.”