SABMiller

SABMiller summarized the first six months of the current fiscal year. Miller Brands Ukraine has been demonstrating considerable production growth while the market collapses (Translation)

Press Release   •   Nov 01, 2011 08:44 GMT

In October 2011, SABMiller plc summarized the first six months of the current fiscal year that started April 1, 2011*. Miller Brands Ukraine , the Ukrainian branch of SABMiller, demonstrated considerable production growth amidst beer market collapse in the Ukraine. 

During the first six months of the current fiscal year, SABMiller world production volume increased by 3% compared with the same period last year. At the same time, sales growth in the second quarter (July-September) has somehow slowed down, not reaching the figures of the same period of last year.   In part this is due to colder weather in Europe and China this summer. World-wide sales volume for SABMiller non-alcoholic beverages has increased by 6%. Due to larger sales volumes and rising prices in some markets, during the reporting period SABMiller has increased profits by 6% and income per hectolitre has increased by 3%. Overall, financial and operational results achieved by SABMiller in the first fiscal semester meet the planned criteria.   

Here are SABMiller sales dynamics in the regions: Latin America - 8%, Africa - 15%, Asia - 4%. In Europe, beer sales remain at last year's level due to continuing economic instability, which led to further lowering of the economic sentiment index and consumer expenses.

The biggest contribution to the overall sales volume in European markets was made by the British branch of SABMiller - Miller Brands UK, and also by the Ukrainian branch, Miller Brands Ukraine, demonstrating considerable production growth amidst the beer market collapse in the country. 

According to production volume data (source: "Ukrpivo"),  between January and September 2011 Miller Brands Ukraine production volumes grew from 8.15 mln decalitres to 13.23 mln decalitres of beer (by 62.4%)compared to the same period of last year. At the same time, the total production volume in the Ukrainian market for the same time period dropped by 1.6%.

According to Igor Tikhonov, general manager of Miller Brands Ukraine, "The results achieved during the new reporting period confirm the efficiency of our chosen marketing strategy. Its key principles are as follows:  introduction of the most promising brands from SABMiller global portfolio to the local market and development of niche offers, fully satisfying the demand of Ukrainian consumers. It primarily concerns the premium segment and such brands as Miller Genuine Draft, Zolotaya Bochka and Velkopopovicky Kozel. At the same time, I am pleased to report our success in the mainstream segment: the recently launched licensed brand Amsterdam Mariner continues to demonstrate an excellent growth index."

*The fiscal year in Great Britain starts on April 1 and ends on March 31 of the following year.