US: Miller Brewing, the second-biggest beer maker in the US, is in the throes of a revival, two years after being taken over by one of Africa's leading companies. SABMiller - formed when South African Breweries bought Miller from Altria for $5.5bn - said on May 20 shipments of Miller beer stopped declining and grew 5.3 per cent in the six months to March 31, Financial Time revealed.

Graham Mackay, chief executive, said there was now "clear evidence of a beginning of a turnround at Miller" although he cautioned that there "was still a lot to do".

SABMiller shares, which are listed in London, rose 6 per cent to 660½p. Miller Lite sparked the recovery. The beer has always been low in carbohydrates, a fact that has reignited the interest of weight- conscious consumers and Atkins diet disciples. However, SABMiller said its focus on improving day-to-day operations at Miller was also yielding results.

The US rebound capped a strong set of annual results that were helped by the hot summer in Europe, favourable currency movements and the acquisition of Miller part of the way through its 2002-3 financial year.

Turnover, including its share of associates' sales, rose 41 per cent to $12.65bn in the year to March 31. Excluding associates, group turnover was $11.37bn.

Pre-tax profit rose 81 per cent to $1.39bn, with earnings per share almost doubling to 54.1 cents. Excluding goodwill amortisation and exceptional items, pre-tax profit rose 54 per cent to $1.7bn.

A dividend of 22.5 cents per share is proposed, making 30 cents for the year, an increase of 20 per cent.

SABMiller has launched a hostile bid for Harbin, China's number four beermaker, in which Anheuser-Busch, the rival US brewer, has also invested. However, Mr Mackay said Harbin "was not essential to our strategy in China".

Both international brewers now hold about 30 per cent of the north-east China company.

Strong regions included Europe, in spite of slower volume growth in Poland. Overall, SABMiller said it was well placed to continue earnings growth.

It was also announced yesterday that Louis Camilleri, chairman and chief executive of Altria, is stepping down from the SABMiller board and allowing Altria's board representation to slip from three seats to two.

Mr Mackay dismissed speculation that this was a prelude to Altria selling its stake in SABMiller, picked up when it sold Miller. He said Mr Camilleri had simply been too busy.

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