JSE-listed SABMiller continued to achieve steady, net producer revenue (NPR) growth, despite varied local market performances, during its third quarter ended December 31, 2014, as it benefited from the breadth of its global portfolio of businesses, SABMiller CE Alan Clark said on Wednesday.
“During the quarter, our Latin America and Africa businesses continued to grow both volumes and revenues, together with Europe, while more difficult trading conditions, particularly in China, held back the overall group performance,” he commented in a trading update for the quarter.
The soft drinks and brewing giant’s group NPR for the third quarter under review grew by 4% compared with the prior comparable period, with group NPR for every hectolitre (hl) growth experienced in all regions.
However, lager volume decreased 1%, reflecting continuing volume weakness in China and in US shipments, although, continuing growth was seen in soft drinks across the group, with volumes up 4% in the third quarter.
In Latin America, group NPR grew by 5% in the third quarter compared with the prior comparable quarter. Beverage volumes increased by 2%, with soft drink volumes up 4% and attributed to SABMiller’s nonalcoholic malt brands. Lager volumes were up 1%.
Group NPR in Africa, which included South Africa, grew by 7% in the quarter under review, influenced by beverage volume growth of 4%, as well as pricing and continued improvement in the premium category. Lager volumes increased by 3%, while soft drinks volumes were up by 5%.
In South Africa, group NPR grew by 6% and was driven by a positive pack and brand mix in lager.
Asia Pacific group NPR declined by 2%. SABMiller explained that the beverage volume decline of 7% was partially offset by group NPR/hl growth of 6%, which principally reflected the impact of changes in the geographic mix.
In Europe, group NPR grew by 3%, driven by beverage volume growth of 2%, while lager volumes were also up 2%. “Group NPR growth was achieved despite a low inflationary environment, although assisted by cycling a soft comparative prior-year quarter,” the group noted.
Further, North America group NPR declined by 1%, reflecting a 1% decline in SABMiller and Molson Coors Brewing Company joint venture MillerCoors’ group NPR. While MillerCoors’ volumes were lower, this was partially offset by higher net pricing and a favourable brand mix, said SABMiller.
The calculation of the organic growth rates excluded the impact of acquisitions and disposals.