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SABMiller full-year revenue hit by strong U.S. dollar

Published 18/05/2016, 08:06
© Reuters. Beer flows from a bottle of Stella Artois into a glass in this picture illustration taken in Sarajevo
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(Reuters) - Brewer SABMiller (L:SAB) posted an 8 percent fall in revenue even as beverage sales rose 2 percent by volume in fiscal year 2016, as foreign currencies struggled against a strong dollar.

The brewer of Miller Lite, Castle Lager and other beers said its revenue rose 5 percent in the year ended March 31, on a constant currency basis, as sales grew stronger in Africa and Latin America.

The company said its deal to get acquired by Anheuser-Busch InBev (BR:ABI) was on track to close in the second half of the year, but not before its final dividend of 93.75 cents becomes payable to its shareholders on Aug. 12.

In Latin America, SAB sold 5 percent more beverages by volume, bringing the region's contribution closer to a quarter of the company's total revenue on a constant currency basis.

SABMiller's group net produce revenue came in at $24.2 billion for the year, down from the $26.3 billion it earned a year ago including the impact from currency exchange rates.

Sales of lager increased 1 percent by volume in the year while soft drink sales rose 6 percent. SAB said total volume growth in beverages was tempered by weakness in China and the U.S.

© Reuters. Beer flows from a bottle of Stella Artois into a glass in this picture illustration taken in Sarajevo

Lager sales in Europe continued to be weak for the year. Through the year, consumers in Europe and North America have been drinking less of the mainstream lager that SAB and other large brewers sell.

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