SABMiller Q3 Group NPR Dips On Adverse Currency, Weak North America

(RTTNews) - SABMiller Plc. (SBMRY.PK, SAB.L), which is being bought by beer giant Anheuser-Busch InBev SA/NV (BUD, AHBIF.PK), reported Thursday that its third-quarter group net producer revenue or NPR declined by 8 percent due to the significant adverse depreciation of key operating currencies against the US dollar.

However, group NPR, on an organic constant currency basis, grew 7 percent, benefited by beverage volume growth of 4 percent and price and mix realisation of 3 percent.

The company said its Group NPR growth was held back by headwinds in associates' and joint ventures' major markets and continued industry trends in the USA.

Chief Executive Alan Clark stated that the majority of its subsidiary businesses achieved strong growth. Group NPR in South Africa grew 16 percent and African subsidiaries by 18 percent.

Lager volume growth accelerated, underpinned by growth of 7 percent in Latin America and 6 percent from subsidiary businesses in Africa.

Subsidiary total beverage and lager volumes grew 8 percent and 6 percent respectively, assisted by favourable weather conditions in some markets.

Premium lager brand volumes grew 4 percent and volumes of global lager brands increased 8 percent. Soft drinks volumes grew by 8 percent, with double digit growth in Africa and a subdued performance in Latin America.

In Latin America, an 8 percent constant currency sales growth was led by Colombia, and the Asia Pacific region benefited from volume and NPR growth in Australia. Europe had a stronger quarter with 6 percent sales growth, with all of its subsidiaries showing increase.

Meanwhile, North American sales dropped 1 percent with 2 percent drop in volume due to the performance of MillerCoors, partly offset by slight increase in price. The company noted that domestic sales to wholesalers were down 3 percent in the quarter, while MillerCoors group NPR per hecto litre grew 1 percent, reflecting positive sales mix together with favourable net pricing. US domestic sales to retailers were down 2 percent.

In London, SABMiller shares were trading at 4,121.50 pence, down 0.05 percent.