SABMiller sees Q3 net producer revenue growth - CNBC Africa

SABMiller sees Q3 net producer revenue growth


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SABMiller has more than 200 beer brands and growing businesses in soft drinks. PHOTO: Getty Images

The global beer brewer saw total beverage volumes increase by two per cent for the third quarter, with lager volumes up one per cent and soft drinks volumes up seven per cent.

“Growth in the third quarter was driven by our emerging market businesses where we are successfully targeting new consumers through affordability and premiumisation initiatives across our brand portfolios,” said [DATA SAB:SABMiller] chief executive, Alan Clark.

“The combination of pricing and volume growth, particularly in Africa, Latin America and China, supported net producer revenue growth of four percent. This was in spite of continued weakness in consumer sentiment, which particularly impacted our European and North American businesses.”

The group’s Africa division offered an encouraging delivery despite some challenges with net producer revenue (NPR) growing by eight per cent on an organic, constant currency basis. The division also saw total volume growth of five per cent and lager growth of six per cent.

“Lager volumes in Tanzania grew by five per cent driven by strong growth in the mainstream and affordable segments. In Zambia lager volume growth of 12 per cent was supported by increased availability and trade buy in ahead of the January 2014 price increase following the 50 per cent increase in excise. Political unrest in Mozambique had a negative impact on lager volumes resulting in a decline of two per cent in the quarter,” SABMiller said.

“Increased capacity in Nigeria continued to support strong growth with Hero Lager and Trophy Lager performing well. Soft economic conditions in Uganda and Zimbabwe persisted in the quarter resulting in declining lager volumes versus the prior year. Our associate Castel also delivered lager volume growth of six per cent with Angola performing ahead of expectations.”

It added that soft drinks volume growth was driven by good performances in Ghana and Zambia, as well as SABMiller’s associates Castel and Delta in Zimbabwe.