SABMiller sees strong quarter in Africa and Latin America
Overall, SABMiller saw volume growth of 4% and group NPR (net producer revenue) growth of 7% for the quarter ending December 31, 2015, on an organic constant currency basis.
Africa, Latin America, Asia Pacific and Europe performed well. But SABMiller says overall results were impacted by ‘significant depreciation’ of key operating currencies against the US dollar. On a reported basis, group NPR declined by 8% for the quarter, and 9% for the year to date.
Africa: soft drinks boom
In Africa, group NPR grew by 12%. SABMiller says this is thanks to beverage volume growth of 8%, a positive category mix in many markets, and selective pricing.
Lager volumes increased by 4%, while soft drinks grew by 13%.
Warmer weather helped the company in South Africa. Group NPR rose by 16%, with beverage volumes up 10%.
“Lager volume growth of 2% reflects good trade execution over the peak trading period with continuing growth of Castle Lager, particularly in bulk packs, partly offset by Hansa Pilsener which declined,” said SABMiller in its statement.
“Our premium lager brand volumes increased by 12% as a result of continued growth of Castle Lite and supported by a return to growth of Redd’s.”
Soft drinks in Africa grew by 21% in volume, again thanks to the weather and growth of SABMiller’s still beverages portfolio.
SABMiller says ‘sustained strong momentum’ in its African subsidiaries has been important, with group NPR up 18%, beverage volumes up 12%, and lager volumes up 16%.
Tanzania, Mozambique, Zambia and Nigeria all saw an increase in NPR. However, SABMiller says it is considering its options in South Sudan.
“The continuing turmoil in South Sudan and the acute shortage of access to foreign exchange in the country significantly impacted our performance in the quarter. As a result, we are evaluating our options, including scaling back our operations,” it said.
Latin America: Aguila Light stars
Colombia and Central American were highlights for SABMiller in Latin America.
In Colombia, group NPR grew 10% with beverage volumes up 6% and the effect of premiumization.
Aguila Light and alcohol-free Aguila Cero helped drive lager’s 13% volume growth. Mainstream brands Poker and Club Colombia also saw good growth.
In Central America, group NPR grew 10% with beverage volumes up 10%.