SABMiller’s profits jump 26%

Britain-based brewer SABMiller, the maker of Grolsch and Miller Lite, said on Thursday that full-year net profits jumped 26% to $2.4 billion (1.7 billion euros) on rising sales in developing markets.

The profit after tax level for the year to March 31 compared with net earnings of $1.91 billion in 2009/10, SABMiller said in a statement.

SABMiller's Chief Executive Graham Mackay. Credit: REUTERS

“SABMiller's financial performance for the year was very strong,” the company's chairman Meyer Kahn said in the earnings statement.

“While we maintained focus on cost management, we continued to increase investment behind our local and international brand portfolios.”

Total annual sales rose seven percent to $28.3 billion.

African, Asian and Latin American sales rose 20 percent, 16 percent and seven percent respectively. North America sales were flat, while in Europe they fell three percent.

“While consumer demand is likely to continue growing in most developing markets, there are uncertainties in the outlook for inflation and the pace of recovery in Europe and North America,” SABMiller added in its statement.

“Pricing will be considered selectively, country by country, taking account of an expected moderate increase in our raw material input costs, the competitive context and our intention to achieve growth through affordability in some markets.” - Sapa-AFP