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Annual Results

SABMiller's FY pretax profit slips

18 May 2016 07:27

Brewing behemoth SABMiller has booked a lower FY pretax profit of USD4.07bn, down 16% from USD4.83bn, in what it described as a good set of results.

Revenue slipped 10% to USD19.83bn, from USD11.23bn. Dividend was 122 cents a share, from 113 cents.

CEO Alan Clark said SABMiller grew EBITA across all regions and noted the group EBITA margin improved through the year, on an underlying basis.

"This performance reflects our focus on driving superior growth by strengthening our core brands, expanding the beer category to reach more consumers on more occasions and placing an emphasis on premiumisation in all regions.

"As noted through the year, the strengthening dollar against our operating currencies had a material negative impact on reported results.

"Our affordability and premiumisation initiatives have allowed us to capture growth in developing markets and key trends in developed markets.

"Our subsidiaries achieved volume and NPR growth of 5% and 8% respectively, with a particularly good performance in a number of key markets.

"Premium lager brands' NPR grew by 11%10, while global lager brands' NPR grew by 13%, with growth across all regions. Our growth accelerated in the year, driven by improving momentum in Latin America, continued strong and well-balanced momentum in Africa and improvements in Australia and Europe in the second half.

"In creating a more integrated global business we have been able to cut costs and free up in-market resources to deliver on our strategic objectives.

"We continue to focus on improving our in-country performance in a cost efficient manner, supported by our global cost and efficiency programme which is ahead of schedule and delivered cumulative net annualised savings of US$547 million by the year end.

"The programme is on track to achieve our 2020 target of US$1,050 million. These initiatives mitigated adverse transactional currency headwinds.

"We are expanding our exposure to growing markets and building the optimum portfolio of lager, soft drinks and other alcoholic beverages to capture growth. Soft drinks volumes grew by 6%.

"On 10 May 2016, the South African Competition Tribunal approved, with agreed conditions, the formation of Africa's largest soft drinks beverage operation, Coca-Cola Beverages Africa (CCBA). We expect the transaction to complete as soon as practicable.

"Achieving these results this year, notwithstanding economic and currency volatility and the distraction of the AB InBev offer, is a testament to the dedication and hard work of our people."


− Group net producer revenue (NPR) grew by 5%, with group NPR per hl growth of 3%.

− Group beverage volumes increased by 2%, with lager volumes up 1% and soft drinks volumes up 6%.

− EBITA grew by 8% and EBITA margin increased by 60 basis points (bps).

− The depreciation of key operating currencies against the US dollar impacted results such that reported group NPR, EBITA and adjusted EPS declined by 8%, 9% and 6%, respectively.

− Exceptional charges of US$721 million principally relating to the impairment of our investments in Angola and South Sudan, together with costs associated with the Anheuser-Busch InBev SA/NV (AB InBev) transaction.

− Adjusted constant currency EPS grew by 12%.

− Free cash flow of US$2,969 million.

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