SABMiller, the brewing giant in talks about a potential takeover by rival Anheuser-Busch InBev, reported a 2 percent rise in second-quarter sales volumes on Tuesday which it said reflected the strength of its long-term business model. The brewer’s reported NPR fell nine percent both in the second quarter and the first half. “Growth accelerated in the second quarter of the year, underpinned by our unmatched footprint in the growing beer markets of the world”.
Advertisement
SAB Miller said strong demand for brands such as Aguila Light and Poker in Colombia and Castle Lite in South Africa drove up beverage and lager volumes by 5%. Slower volume growth by its associates was blamed on tough macro economic and trading conditions in a few of their markets which resulted in overall group lager volumes for the half being in line with the prior year, with growth of 1% in the second quarter. “Particular highlights were our very strong lager volume growth in these regions, together with double-digit revenue growth in the second quarter in Africa”.
He added: ” While adverse currency movements have materially impacted our reported results, we have a strong business with exceptional long-term prospects”.
The company is now in an “offer period” as defined by the UK Takeover Code, after the world’s largest brewer, Anheuser-Busch InBev, approached SABMiller in September about a possible takeover.
It is understood AB InBev first put forward a proposal of around £40 a share, but is now sweetening its approach after reportedly being rebuffed.
Since AB InBev’s intention to pursue a takeover of SABMiller was disclosed on September 16, there has been informal contact between the companies, two people familiar with the matter have told Bloomberg News.
SAB said it had brought forward its trading update to ensure the timely release of information during what is classed as an offer period.
Matjila declined to say which way the Pretoria-based PIC, which owns 3.14% of SABMiller, would vote on an offer should one be made. The stock has risen 10.3 percent since the start of the year and the company’s market capitalisation now stands at £59.9 billion.
Advertisement
Phil Carroll, an analyst at Shore Capital, said “extreme” changes in foreign currency rates would likely see City forecasts for SABMiller trimmed, but said the underlying performance at the group was “strong and might surprise a few in the market”.
