SABMiller, the world’s second largest brewer, has reported strong profit growth for the year ending 31 March 2012, helped by increased sales in Latin America.
Net annual profits of $5.6 billion represent a 54 percent increase on 2011, although the results also include an exceptional gain of $1.2 billion from the sale of the company’s Russian and Ukrainian business.
Lower volume sales in North America and Europe were more than compensated by a 9 percent increase in lager sales in Latin America.
Emerging markets contributed strongly to SABMiller’s profits in 2011/12, with earnings in Africa up by 16 percent after volume growth, strong pricing and mix drives and sales were also up in China and India.
"I am delighted to report another year of significant progress and strong results,” said Meyer Kahn, chairman of SABMiller. “Through our successful marketing, portfolio development and commercial execution we continued to build on our position in the world's developing consumer economies. Strong profit growth continued, driven by an organic total volume increase of 4 percent and complemented by favourable mix and pricing.”
On 16 December 2011 SABMiller completed the acquisition of Australian brewer Foster’s, giving it almost half of the Australian beer market.
The company expects trading conditions to be broadly unchanged this year, with further growth in developing markets but no more than modest improvements in consumer spending in some more developed economies.
Unit input costs are expected to rise in mid-single digits in constant currency terms, but targeted investments in production capacity, marketing and sales capability and business systems will continue to drive medium term growth.
