SABMiller will report its full-year results on Thursday (19 May). Here, just-drinks takes a look at the highs and lows for the brewer in the three months to the end of March.
- At the start of 2011, the brewer announced that its joint venture in China, China Resources Snow Breweries, had acquired Aoke Beer based in Henan province. The purchase represents part of the venture’s plans to “thrust into the market in central China”, a spokesperson said at the time.
- Speculation arose once again, in Janaury, that SABMiller is mulling a move to snap up Foster’s Group’s Australian beer business, Carlton & United Breweries. Reports out of the country suggested that lawyers had cleared a path for the company to acquire CUB, despite the Peroni brewer’s existing beer joint venture in Australia with Coca-Cola Amatil, Pacific Beverages. SABMiller remained silent on the rumours.
- Then, in February, an analyst set tongues wagging by mooting the idea of a mega-merger between SABMiller and Anheuser-Busch InBev. A deal could make sense for both brewers if demand for beer continues to decline in mature western markets, Credit Suisse said. Competition issues in the US and China could be overcome via disposals, said the analyst group in a 22-page note entitled: “Is SAB-ABI the last piece of the puzzle?”
- Over to Africa in March, where SABMiller announced the construction of a new brewery in Nigeria. The firm will spend around US$100m on the new facility in Onitsha in the south-east of the country. The Anambra State Government and other – unnamed – Nigerian investors will hold up to 20% of the shares in the new business. Construction should be completed by July next year.
- Also in March and still in Africa, the brewer advised that it expects to make more revenue from beer sales in Africa over the next four years than it had originally forecast. Over the next three to four years, revenue per hectolitre from its beer sales in Africa is set to rise by between 3% and 5% annually, having previously forecast annual increases of between 1% and 3% for its operations in the region.
- Finally, in a trading update last month, SABMiller said that its financial performance in its full year has been “in line” with its expectations. Lager and soft drink volumes were up by 2% and 3%, respectively, in organic terms for the 12 months to the end of March, while group sales for the year increased by 5% organically.
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