SABMiller posts mixed results

Global beer giant SABMiller has posted a half-year rise in revenues for the six months to September coupled with an overall volume sales decline.

SABMiller revealed a 5% rise in revenue along with a 1% drop in volume sales

The second biggest beer brewer in the world – which has brands like Grolsch, Peroni and Miller leading its portfolio – reported a 5% rise in revenues, but this was countered by the revelation of a 1% contraction in volume sales.

Interestingly, there was a 3% contraction in sales in the most recent financial quarter that spanned the summer months – a time when big-beer volumes usually perform well.

A large portion of the blame has been laid on the poor performance in the Asia-Pacific market, which contracted 8% overall, and the poor Summer weather in China – a market that “declined markedly” according to the company.

SABMiller is in the process of a marketing shake-up as it attempts to broaden its brands’ appeal beyond “the traditional role as the favourite drink for men in pubs and bars”, said chief executive Alan Clark at an investor conference recently.

It is also speculated that SABMiller’s recent attempts to take-over Heineken – an offer that was rebuffed by the Dutch brewer – was a ploy to defend itself against buyout advances by rival beer conglomerate ABInbev. This has, however, been denied by Clark.

The markets have been quick to react to this turbulent period for the company, dropping by 16% from a peak of 3857p during the height of the Heineken rumours to 3250p at the close of play on Monday September 13.