logo-loader
viewSABMiller

SABMiller profits lose fizz as merger costs weigh

South African brewer takes hit from African problems and costs of AB Inbev tie-up

SABMIller30030_original.jpg
Group beverage volumes rose 2%, with lager volumes up 1% and soft drink volumes up 6%

Profits at SABMiller plc (LON:SAB) fell as costs rose ahead of its tie-up with rival Stella Artois maker Anheuser-Busch InBev SA (EBR:ABI).

The Peroni Nastro Azzurro brewer said pre-tax profit in the year to the end of March dropped 16% to US$4.1bn.

It took a US$572 million charge for reducing operations in Angola and war-torn South Sudan and a US$160mln hit from the AB InBev deal.

But group beverage volumes rose 2%, with lager volumes up 1% and soft drink volumes up 6%.

Reported pre-tax earnings before interest and amortisation fell 9% to US$5.8bn.

It said 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.

Chief executive Alan Clark said: “We are expanding our exposure to growing markets and building the optimum portfolio of lager, soft drinks and other alcoholic beverages to capture growth.”

Shares rose 19.5p to 4229.5p in early London trading.

Quick facts: SABMiller

Price: - -

LSE:SAB
Market: LSE
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Sativa Group signs significant product listing with WH Smith...

Sativa Group (Nex: SATI) CEO Henry Lees-Buckley dropped into the Vancouver studio of Proactive with news the company has signed a major CBD product listing agreement with WH Smith Travel.  Lees-Buckley talks about just how big that deal is and what he has been hearing from customers...

12 hours, 18 minutes ago

2 min read