Thursday, brewer SABMiller plc (SAB.L) said the financial results of the group for the twelve months to March 31 remain in line with its expectations, while lager volumes edged down 1% in the fourth quarter. In a trading update, the company said economic conditions deteriorated in the second half and consumer demand dropped in most markets, particularly in the fourth quarter, yet Group revenue benefited from price increases.
SABMiller has brewing and beverage interests in over 60 countries across six continents. The company's brands include international beers like Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch along with local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie.
The brewer said Thursday that lager volumes for the full year were up 2% from last year, and level on an organic basis, with a 1% drop in the fourth quarter. Soft drinks volumes for the full year grew organically by 5%. Organic growth rates exclude the effects of acquisitions and disposals.
In January, the British brewing company posted 1% growth in its lager volume for the third quarter, and said the group's financial performance for the quarter, backed by firm pricing and cost efficiencies, was in line with expectations. At that time, the company reiterated that its markets continued to soften as consumer demand was affected by the weakening global economy.
In its latest trading update, SABMiller said group revenue continued to benefit from price increases, growing in high single digits for the full year on an organic basis at constant rates of exchange. The brewer's financial performance was impacted by significant unfavorable currency movements in the second half of the year, although the financial results of the group remain in line with the company's expectations.
In Latin America, lager volumes were up 1% for the year, with a decline in the fourth quarter. In Colombia, full year volumes dropped 6%, despite a continuing rise in total alcohol share. The fourth quarter was soft due to deteriorating consumer demand and beer price increases.
In Peru, volumes improved 9% from last year and the company gained market share, with growth in the last quarter slowing down sharply. Ecuador volumes grew 14% consistently throughout the year, thanks to a market buoyed by an increase in disposable income. Soft drinks volumes for the region grew 2% for the year on an organic basis.
Europe organic lager volumes were flat with the prior year owing to the economic downturn on consumer disposable income, particularly in the second half of the year.
Poland achieved organic volume growth of 3% and increased market share. In Romania, full year volume growth was 18% but the rate of volume growth slowed sharply in the second half.Full year organic volumes in Russia declined 7%, due to the de-stocking of wholesaler inventories in the second and third quarters, but level in the fourth quarter. In the Czech Republic, full year domestic volumes slipped 4% owing to consumer down-trading in the market.
The world's second largest brewer said MillerCoors U.S. domestic sales to retailers for the nine months to March 31 were down 0.4% against the prior year on a pro-forma basis, with 0.4% growth in the quarter to March.
Premium light brand volumes were up marginally in the quarter. According to the company, for the first time in the past 10 years, continued acceleration of Miller Genuine Draft 64 led to volume growth in the Miller Genuine Draft franchise in the quarter. Blue Moon and Peroni Nastro Azzurro continued to perform well, while Miller High Life growth accelerated and Keystone Light performed strongly.
Africa and Asia delivered organic growth of 4% in lager volumes for the year. In Africa, lager volumes grew by 5% despite a fourth quarter impacted by the financial crisis. Soft drinks volumes for the region grew 13% for the year on an organic basis while traditional beer volumes grew more than 25% on the same basis.
The company noted that Botswana was affected by the introduction of a 30% social tax levy on alcohol with effect from November 1, 2008, while Zambia benefited from lower pricing following an excise reduction.
In China, CR Snow performed well with organic lager volume growth of 4%, in addition to price increases. China achieved double digit growth in the fourth quarter, with very strong growth in the western and central regions. India volumes grew 5% in the year with a stronger fourth quarter. Growth in Australia was in excess of 60% led by Peroni Nastro Azzurro and Miller Chill.
In South Africa, full year lager volumes were down 2% from last year, with a weakening trend in the last quarter. Soft drinks volumes grew 4% for the year. According to the brewer, growth in the fourth quarter was hurt by Easter timing, deteriorating economic conditions and regulatory constraints on beer sales imposed in the Western Cape from January.
SAB.L is currently trading at 1049 pence, down 14.00 pence, from the previous close.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.