SABMiller, the world’s second biggest brewer by volume, has reported a 13 per cent rise in interim profits.
The London-based brewer’s results were boosted by this summer’s World Cup and sales growth in emerging markets.
The group’s portfolio of brands includes international beers such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch, as well as brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SAB is also one of the world’s largest bottlers of Coca-Cola products.
In the six months ending September 30, pre-tax profits rose from $1.5 billion (approximately £934 million) to $1.69 billion, with revenues increasing seven per cent from $8.85 billion to $9.45 billion.
Latin America contributed $676 million of earnings before interest, tax and amortisation, with Africa also driving growth.
Sales growth in emerging markets offset a decline in Europe and North America. Sales volumes were down five per cent in Europe, and five per cent in the US and Canada.
Commenting on the results, chief executive Graham Mackay said: “In trading conditions which remained mixed across our markets, the group benefited from its global spread of businesses, delivering a strong financial performance. The strength of our brands, which supported price increases taken largely in the prior year, contributed to good revenue growth.
“Cost reductions, driven by lower raw material input costs and further fixed cost efficiencies, helped to finance increased investment behind our brand portfolios and assisted margin enhancement. Our financial position remains robust, with a further improvement in free cash flow.”
The company also said that the trend of incremental improvement in economic conditions across most of its emerging markets was “expected to be maintained”.
