SABMiller says that the downturn is not over

"The weakness of our major operating currencies against the U.S. dollar has affected reported results, but we have continued to generate a strong underlying performance," Chief Executive Graham Mackay was reported as saying.

SABMiller reports results in U.S. dollars. However, a significant proportion of the brewer’s earnings comes from emerging economies, which have seen their currencies weaken in the fiscal first half.

The world’s number two brewer said its input costs – which have been sharply higher in the past year – will begin to ease toward the end of this year as existing contracts unwind, allowing it to take advantage of lower prices.

While volumes declined 1 percent in the half year, the company managed to grow its market share in many markets even after implementing significant price increases.

Price rises, together with cost savings, resulted in a 1.1 percentage point growth in operating margin during the period.

The company said price rises will be more moderate in the coming months compared with last year.

According to reports, SAB’s shares have risen more than 40 percent since the start of the year because the company’s strength in emerging markets is seen as an investment opportunity.

SABMiller is generally considered as a front-runner ahead of Heineken to buy Mexico’s second-largest brewer FEMSA Cerveza.