SABMiller FY16 Results Down, Lifts Dividend; Sees Good Performance In Year Ahead

(RTTNews) - SABMiller Plc. (SBMRY.PK, SAB.L), which is in deal to be bought by Belgian brewer Anheuser-Busch InBev NV, or AB InBev (BUD, AHBIF.PK), reported Wednesday that its fiscal 2016 profit before tax declined 16 percent to $4.074 billion from last year's $4.83 billion.

Earnings per share dropped to 166 US cents from 203.5 US cents last year.

The latest results reflected exceptional charges of $721 million principally relating to the impairment of investments in Angola and South Sudan, together with costs associated with the AB InBev transaction.

Adjusted earnings per share were 224.1 US cents, compared to 239.1 US cents a year ago.

Revenue declined 10 percent to $19.83 billion from prior year's $22.13 billion. On an organic constant currency basis, revenues grew 7 percent.

Group beverage volumes increased 2 percent organically, with lager volumes up 1 percent and soft drinks volumes up 6 percent.

Further, the company announced full year dividend per share of 122.0 US cents, up 8 percent on prior year, with final dividend of 93.75 US cents per share payable on 12 August.

AB InBev and SABMiller do not anticipate completion of the recommended acquisition prior to this date.

Looking ahead, the company expects to deliver good underlying performance in the year ahead. Cost and efficiency programme is on track to reach targeted annualised savings of $1.05 billion per annum by the financial year ending 31 March 2020.

The company anticipates to continue to face foreign exchange volatility and the results of certain of key operations would be impacted by currency depreciation against the US dollar.