In its half year interim statement, international brewers SABMiller PLC (LSE: SAB) said that weak currency conversions offset a ‘strong underlying performance’ . Revenue fell 6% and reported earnings were down 2%.
Improved pricing and cost efficiency led the underlying performance. On a constant currency basis, group revenue growth and earnings improved by 3% and 11% respectively. SABMiller achieved margin growth of 110 basis points, and free cash flow improved by $1.1 billion through the six month period.
On a constant currency basis, underlying earnings performance was strong where the company’s Asian and African division performed the best, rising 29% and 15% respectively. In its western markets, earnings growth was more restrained. In North America, cost synergies lead to a 7% rise in earnings. Meanwhile in Europe the group’s solid pricing overcame reduced volumes, resulting in a 5% increase in earnings.
Graham Mackay, Chief Executive of SABMiller commented on the group’s performance: "In some of the toughest economic conditions seen for decades, we have continued to take share in a number of markets. The weakness of our major operating currencies against the US dollar has affected reported results, but we have continued to generate a strong underlying performance. The actions we have taken to position our business globally, to invest in brands and to develop our operational capabilities will continue to underpin our long term growth."