UK & South Africa: SABMiller provides update of trading statement

Prior to the announcement of its interim results due in November, SABMiller plc has provided on October 12 an update to the trading statement made at the Company’s AGM on 28 July 2005.

The group’s financial performance in the six-month period to 30 September 2005 was in line with management’s expectations, and organic growth of some 5% in lager volumes was recorded.

In North America, Miller’s US domestic sales to retailers (STRs) were down by 0.3% against prior year in a trading environment that has become increasingly price-competitive and subject to higher input costs, both of which have affected profitability. STR growth in the Miller Lite franchise was offset by a net decline in the STRs of other brands.

Volumes of carbonated soft drinks (CSDs) in Central America were approximately 3.5% above prior year with growth in both Honduras and El Salvador, whilst beer volumes were down some 7% principally as a result of excise increases in El Salvador.

Our Europe business has generated organic growth in lager volumes of 5%, with a particularly pleasing performance in Poland complemented by more moderate growth in most other countries.

The Africa and Asia business delivered an organic increase in comparable lager volume of 13% over the prior year. This was driven by strong organic growth in China, together with good growth in Mozambique and Tanzania.

Our South Africa Beverages business benefited from the warm winter weather during the second quarter. Beer volumes over the six months grew by almost 3% on a comparable basis, reflecting good trading in recent months. The favourable weather conditions together with successful promotions during the winter months resulted in an increase in soft drink volumes of some 10%.

SABMiller plc is one of the world’s largest brewers, with 2004/05 lager volumes in excess of 148 million hectolitres. It has a brewing presence in over 40 countries across four continents and a portfolio of strong brands and leading market shares in many of the countries in which it has brewing operations. Outside the USA, SABMiller plc is one of the largest bottlers of Coca-Cola products in the world.

In the year ended 31 March 2005, the group reported US$2,194 million pre-tax profit and a turnover of US$14,543 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.

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