By Peter Evans
LONDON--SABMiller PLC (SAB.LN) Thursday warned that currency
depreciations against the dollar would weigh on earnings next year,
even as the world's second-biggest brewer reported a rise in
first-half profit.
The maker of Miller Genuine Draft and Peroni Nastro Azzuro said
a strong performance in Africa, its fastest-growing market, helped
to offset volume declines in Europe and North America during the
six months to Sept. 30.
SAB has gained from strong demand in developing economies in the
past five years, as consumers have traded up from home-brewed
alcohol to branded beer. Emerging markets make up around 75% of the
company's earnings.
First-half net profit rose 8.5% to $1.71 billion from $1.58
billion. Net producer revenue--which includes sales from joint
ventures--increased to $13.79 billion from $13.67 billion, in line
with market expectations.
"We have continued to deliver on the potential of our businesses
in both developed and developing markets," said Chief Executive
Alan Clark.
SAB warned however that the depreciation of key currencies
against the dollar would adversely affect its full-year results,
although it didn't say to what extent.
The brewer is the latest company with mass exposure to emerging
markets to flag currency problems. Consumer goods giant Unilever
PLC (ULVR.LN) last month issued a profit warning on "significant
currency weakening" in emerging markets.
Write to Peter Evans at peter.evans@wsj.com
Order free Annual Report for SABMiller Plc
Visit http://djnweurope.ar.wilink.com/?ticker=GB0004835483 or
call +44 (0)208 391 6028
Order free Annual Report for Unilever NV
Visit http://djnweurope.ar.wilink.com/?ticker=NL0000009355 or
call +44 (0)208 391 6028
Order free Annual Report for SABMiller Plc
Visit http://djnweurope.ar.wilink.com/?ticker=US78572M1053 or
call +44 (0)208 391 6028
Order free Annual Report for Unilever NV
Visit http://djnweurope.ar.wilink.com/?ticker=US9047847093 or
call +44 (0)208 391 6028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires