LONDON, May 22, 2014 (GLOBE NEWSWIRE) -- SABMiller plc, one of the world's leading brewers, reports its preliminary (unaudited) results for the twelve months to 31 March 2014.
Highlights
1 Expressed as a percentage of group NPR.
2014 US$m |
20132 US$m |
% change |
|
Group revenuea | 34,084 | 34,487 | (1) |
Revenueb | 22,311 | 23,213 | (4) |
Group net producer revenuec | 26,719 | 26,932 | (1) |
EBITAd | 6,453 | 6,379 | 1 |
Adjusted profit before taxe | 5,712 | 5,597 | 2 |
Profit before taxf | 4,823 | 4,679 | 3 |
Profit attributable to owners of the parent | 3,381 | 3,250 | 4 |
Adjusted earningsg | 3,865 | 3,772 | 2 |
Adjusted earnings per share | |||
- US cents | 242.0 | 237.2 | 2 |
- UK pence | 152.1 | 150.2 | 1 |
- SA cents | 2,451.7 | 2,018.9 | 21 |
Basic earnings per share (US cents) | 211.8 | 204.3 | 4 |
Dividends per share (US cents) | 105.0 | 101.0 | 4 |
Free cash flow | 2,563 | 3,230 | (21) |
2 As restated. Further details of the restatement are provided in the financial review and note 13.
a Group revenue includes the attributable share of associates' and joint ventures' revenue of US$11,773 million (2013: US$11,274 million). b Revenue excludes the attributable share of associates' and joint ventures' revenue. c Group net producer revenue (NPR) comprises group revenue less excise and similar taxes, including the group's share of associates' and joint ventures' excise and similar taxes. d Note 2 provides a reconciliation of operating profit to EBITA which is defined as operating profit before exceptional items and amortisation of intangible assets (excluding computer software) but includes the group's share of associates' and joint ventures' operating profit, on a similar basis. EBITA is used throughout this preliminary announcement. e Adjusted profit before tax comprises EBITA less adjusted net finance costs of US$645 million (2013: US$738 million, restated) and share of associates' and joint ventures' net finance costs of US$96 million (2013: US$44 million). f Profit before tax includes exceptional charges of US$202 million (2013: US$203 million). Exceptional items are explained in note 3. g A reconciliation of adjusted earnings to the statutory measure of profit attributable to owners of the parent is provided in note 6. |
Alan Clark, Chief Executive of SABMiller, said:
"We have produced a resilient performance in the face of a number of headwinds, with organic, constant currency EBITA growth of 7% and strong margin improvement. Group net producer revenue growth of 3% was led by our developing market businesses in Africa and Latin America, together with our associate in China, where we continued to build capacity, make selective price increases and grow our premium brand portfolios. We continue to deliver operational cost efficiencies including the completion of the business capability programme and have identified further areas where efficiencies can be targeted."
"As we look ahead, we will continue to innovate and rejuvenate our products, build on our position in growth markets, and increase the efficiency of our operations. With this approach I believe we are well placed to continue to deliver strong returns to shareholders."
Group net producer revenue |
Reported 2013 US$m |
Net acquisitions and disposals US$m |
Currency translation US$m |
Organic growth US$m |
Reported 2014 US$m |
Organic, constant currency growth % |
Reported growth % |
Latin America | 5,802 | (45) | (305) | 293 | 5,745 | 5 | (1) |
Europe | 4,300 | 269 | 4 | 1 | 4,574 | - | 6 |
North America | 4,656 | - | - | 9 | 4,665 | - | - |
Africa | 3,290 | 9 | (55) | 180 | 3,424 | 5 | 4 |
Asia Pacific | 4,005 | 9 | (213) | 143 | 3,944 | 4 | (2) |
South Africa: | 4,879 | 24 | (826) | 290 | 4,367 | 6 | (10) |
- Beverages | 4,475 | 17 | (757) | 262 | 3,997 | 6 | (11) |
- Hotels and Gaming | 404 | 7 | (69) | 28 | 370 | 7 | (8) |
Total | 26,932 | 266 | (1,395) | 916 | 26,719 | 3 | (1) |
Group volumes |
Reported 2013 hl'000 |
Net acquisitions and disposals hl'000 |
Organic growth hl'000 |
Reported 2014 hl'000 |
Organic growth % |
Reported growth % |
Lager | 241,940 | 787 | 2,110 | 244,837 | 1 | 1 |
Soft drinks | 56,881 | 5,800 | 2,681 | 65,362 | 5 | 15 |
Other alcoholic beverages | 7,452 | 223 | 41 | 7,716 | 1 | 4 |
Total | 306,273 | 6,810 | 4,832 | 317,915 | 2 | 4 |
EBITA |
Restated 2013 US$m |
Net acquisitions and disposals US$m |
Currency translation US$m |
Organic growth US$m |
Reported 2014 US$m |
Organic, constant currency growth % |
Reported growth % |
Latin America | 2,112 | (11) | (112) | 203 | 2,192 | 10 | 4 |
Europe | 784 | 33 | 7 | (121) | 703 | (15) | (10) |
North America | 740 | - | - | 57 | 797 | 8 | 8 |
Africa | 838 | - | (10) | 111 | 939 | 13 | 12 |
Asia Pacific | 854 | (9) | (72) | 72 | 845 | 8 | (1) |
South Africa: | 1,253 | 4 | (211) | 92 | 1,138 | 7 | (9) |
- Beverages | 1,119 | 2 | (188) | 82 | 1,015 | 7 | (9) |
- Hotels and Gaming | 134 | 2 | (23) | 10 | 123 | 8 | (8) |
Corporate | (202) | - | 2 | 39 | (161) | ||
Total | 6,379 | 17 | (396) | 453 | 6,453 | 7 | 1 |
EBITA Margin1 (%) | 23.7 | 24.2 |
1 Expressed as a percentage of group NPR.
Business review
The group delivered earnings growth in the year, despite headwinds in several markets. The depreciation of key currencies against the US dollar had a significant negative impact on the translation of financial results in South Africa, Latin America and Australia, resulting in a decline of 1% in reported group NPR and a 1% increase in reported EBITA.
Group NPR growth of 3% on an organic, constant currency basis was driven by our developing market operations in Latin America, Africa, Asia Pacific and South Africa, through a combination of volume growth, selective pricing and improved brand mix. Lager volumes grew by 1% on both reported and organic bases reflecting robust growth in Latin America, Africa and China, partially offset by declines in Europe and North America. Reported soft drinks volumes increased by 15%, benefiting from the full consolidation of Coca-Cola Icecek in our associate Anadolu Efes, with soft drinks volume growth of 5% on an organic basis driven by Latin America, Europe and Africa.
On an organic, constant currency basis EBITA grew by 7% as a result of higher group NPR, cost efficiencies across most divisions and a reduction in performance-related share incentive charges, resulting in a 90 bps increase in our organic, constant currency EBITA margin. Input cost increases were mitigated by procurement savings, leaving raw material input costs in line with the prior year on a constant currency, per hl basis. Production efficiencies also aided cost of goods sold, while a focus on cost management benefited fixed costs. Marketing investment increased in some developing markets to support category development and the expansion of our brand portfolios. On a reported basis EBITA margin increased by 50 bps, reflecting the adverse impact of both currency and the inclusion of the acquisition of the Kingway brewery business in our Chinese associate's results in the second half of the year, together with the full consolidation of Coca-Cola Icecek in Anadolu Efes' results.
Adjusted earnings grew by 2% over the prior year, significantly impacted by the depreciation of key currencies against the US dollar, principally the South African rand, Australian dollar, Colombian peso and Peruvian nuevo sol. Net finance costs were lower than in the prior year following a reduction in net debt including the repayment of some higher interest bonds which matured in the year.
Due to the phasing of scheduled receipts from and payments to the Australian Tax Office and our increased investment in our Chinese associate to partly fund the Kingway acquisition, free cash flow for the year was lower by US$667 million at US$2,563 million. However, excluding these one-off items free cash flow increased by 13% compared with the prior year. Adjusted EBITDA was adversely impacted by the depreciation of key currencies against the US dollar in the year but still grew by 1%. Strong working capital cash inflows in Europe and Latin America led to a working capital cash inflow of US$93 million. Capital expenditure at US$1,485 million was in line with the prior year, with continued investment in brewing capacity and capability, particularly in Africa and Latin America.
The group's gearing ratio as at 31 March 2014 was 52.0%. Net debt reduced by US$1,297 million, ending the year at US$14,303 million. A final dividend of 80.0 US cents per share is proposed, to be paid to shareholders on 15 August 2014. This brings the total dividend for the year to 105.0 US cents per share, an increase of 4.0 US cents over the prior year.
1Continuing information basis adjusts for the impact of discontinued licensed brands in all comparative information.
Outlook
Trading conditions are expected to remain broadly unchanged from the year just ended, with growth continuing to be driven by our developing markets, however the business will continue to be impacted by currency movements. Development of our brand and pack portfolios will continue, as we seek opportunities to reach new consumers and enhance the beer category. Revenue growth will also be driven by selective price increases and management of our price points across all brands and packs. Raw material unit input costs are expected to rise in low single digits in constant currency terms. Investment in production capacity, capability and strong commercial execution of existing and new consumer offerings will continue to drive growth. We will implement our new programme to deliver efficiencies to invest in this growth and improve our margins.
Enquiries: | ||
SABMiller plc | Tel: +44 20 7659 0100 | |
Catherine May | Director of Corporate Affairs | Tel: +44 20 7927 4709 |
Gary Leibowitz | Senior Vice President, Internal and Investor Engagement | Tel: +44 20 7659 0119 |
Christina Mills | Director of Communications and Reputation | Tel: +44 20 7659 0105 |
Richard Farnsworth | Business Media Relations Manager | Tel: +44 20 7659 0188 |
A live audio webcast of a presentation to the investor community by Chief Executive, Alan Clark, and Chief Financial Officer, Jamie Wilson will begin at 9.30am (BST) on 22 May 2013. To register for the webcast, download the slide presentation, view management video interviews and download photography and b-roll, visit our online Results Centre at www.sabmiller.com/resultscentre. To monitor Twitter bulletins throughout the day follow www.twitter.com/sabmiller or #sabmillerresults. Copies of the press release and detailed Preliminary Announcement are available from the Company Secretary at the Registered Office or from our website www.sabmiller.com. |
SABMiller preliminary results to 31 March 2014 http://hugin.info/159125/R/1787883/614051.pdf
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