LONDON – — SABMiller PLC, the world’s third-largest brewer, said Monday its first- half sales rose 11 percent on demand in South America and Eastern Europe.
Revenue growth for the company behind the Miller Lite and Peroni brands was partially offset by new investment across the business and higher raw-material costs.
SABMiller said sales in the six months to Sept. 30, excluding volumes for businesses acquired in the past 12 months, remained in line with management’s expectations.
SABMiller shares fell 4.72 percent to $2.88 in London on Monday.
Last week, SABMiller said it would combine its U.S. and Puerto Rican operations with those of Denver-based Molson Coors in a joint venture that will have combined annual beer sales of 69 million U.S. barrels and revenue of about $6.6 billion.
In North America, SABMiller reported a 5.9 percent sales increase, marking a slight upturn from the first quarter where volume in the U.S. beer market rose 4.6 percent. SABMiller has faced tough competition in the U.S. from an aggressive discounting policy by its main rival, Anheuser-Busch.
Analysts said revenue growth had possibly reached its peak.
“It is difficult to see further upward progress, specially with the possibility that the Miller-Coors transaction faces regulatory difficulties. Whilst we do not necessarily think this will be the case, it is certainly possible,” stockbroker Collins Stewart said in a statement.
In Europe, sales growth rose by 12 percent, with Eastern Europe leading the way. Poland achieved growth of 13 percent, Russia was up 18 percent, and Romania grew by 37 percent.
In March, Heineken NV ended SABMiller’s contract to make Amstel lager in South Africa – the loss of the brand is expected to cost $300 million in lost sales and profit of $80 million in both 2008 and 2009. An impact would also be seen in the half-year earnings report that the company will release Nov. 15, company spokesman Nigel Fairbrass said.
