Political tensions drives down SABMiller revenue

by Trust Matsilele 0

SABMiller reported a one percent decrease in revenue to 22 million US dollars for 12 months ended 31 March 2014 compared to 23 million US dollars recorded in 2013.

“Political tensions in Mozambique negatively impacted consumer demand and resulted in our lager volumes declining by two per cent, mainly impacting mainstream brand Manica,” SABMiller said.

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“Lager volumes grew by six per cent supported by growth in a number of markets, although growth was hampered by poor economic fundamentals in South Sudan and Zimbabwe.”

SABMiller plc reported adjusted earnings per share with a two per cent surge to 242 US cents in 2014 up from 237 US cents in 2013.

The company reported a four per cent surge in dividend with 105 US cents per share in 2014 up from 101 US cents in 2013.

The group noted that it had delivered earnings growth in the year, despite headwinds in several markets.

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The group’s chief executive office, Alan Clark says the company had managed produce a resilient performance in the face of a number of headwinds.

“Group net producer revenue growth of three per cent was led by our developing market businesses in Africa and Latin America, together with our associate in China, where we continued to build capacity, make selective price increases and grow our premium brand portfolios,” Clark noted.

“As we look ahead, we will continue to innovate and rejuvenate our products, build on our position in growth markets, and increase the efficiency of our operations. With this approach I believe we are well placed to continue to deliver strong returns to shareholders.”

SABMiller is expecting trading conditions to remain broadly unchanged from the year just ended, with growth continuing to be driven by its developing markets.

The company noted that the business will continue to be impacted by currency movements.