SABMiller share price: Company releases full-year results

on May 13, 2015
Updated: Oct 21, 2019
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SABMiller Plc (LON:SAB) has this morning update investors on its full-year performance.

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**Highlights from SABMiller’s statement:**
– Organic, constant currency group net producer revenue (NPR) growth of 5%
– Group NPR per hectolitre (hl) up 3% on an organic, constant currency basis, reflecting growth in all regions
– Organic, constant currency EBITA growth of 6% and EBITA margin1 expansion of 30 basis points (bps)
– Adjusted constant currency EPS grew by 5% and by 6% excluding the prior year net earnings impact of the group’s disposed investment in Tsogo Sun Holdings Limited (Tsogo Sun)
– Reported group NPR, EBITA and adjusted EPS declined, impacted by adverse translational foreign exchange effects and the disposal of Tsogo Sun
– Free cash flow2 increased by 26%
– Announcement of the formation of Coca-Cola Beverages Africa (CCBA), the largest bottler in Africa, strengthening further our leading presence on the African continent
– Full year dividends per share of 113.0 US cents, up 8% on prior year
Alan Clark, Chief Executive of SABMiller, said:

“We achieved positive momentum in our underlying business performance, particularly in the latter part of the year, with EBITA growth and margins expanding on an organic, constant currency basis. As flagged, the strengthening dollar against many of our operating currencies had a negative translational impact on reported results.

“We have a clear strategy to drive topline growth, improve efficiency and shape our mix of business to continue to deliver superior returns to shareholders. Today’s results demonstrate good progress against this strategy. This success is founded on our broad exposure to high-growth developing markets where we have long standing commercial and operational experience, including deep local consumer insights. We have also seen good performance from many of our markets in improving their premium mix and driving innovation.

“Topline revenue growth was strong in the face of industry headwinds which kept lager volumes in line with last year. Revenue growth was helped by positive results from our strategy to increase premium beer sales in markets like the USA and Australia and in developing markets across Africa and in Colombia. NPR growth in premium brands1 was 8% (in constant currency) with global brands1 NPR growth of 16%, supported by volume growth of 11%. At the other end of the price ladder, we increased the availability of affordable beers, taking share from the informal alcohol market in Africa and Latin America.

“We continue to invest in our brands, including reinvigorating our high-volume core lagers so they remain relevant for today’s millennial consumers, and broadening beer’s appeal so it’s the drink of choice for more people on a greater variety of occasions. We’re doing this by developing new beer styles and flavours, and expanding into ciders and radlers. We are seeing great success with brands like Redd’s Apple Ale in the USA and Flying Fish in South Africa.

“Soft drinks continue to be a standout performer, with excellent volume growth across Africa, Latin America and Europe. Our confidence in the future of our soft drinks business was underlined by the agreement, announced in November 2014, to create CCBA.

“By consolidating activities such as procurement and back office services, and integrating our supply chain, we are reaping rewards. The cost and efficiency programme has delivered cost savings of US$221 million in the year, and we are on track to deliver our targeted savings of US$500 million per annum by 2018. Within this, our global procurement organisation helped to drive savings in direct materials, which, together with lower commodity prices, mitigated adverse transactional currency headwinds.”
**More to follow…**
As of 06:57 BST, Wednesday, 13 May, SABMiller plc share price is 3,502.50p.

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