Nile Breweries leads SABMiller volume growth (Translation)
29 October 2010
Kampala, October 21, 2010
Uganda's leading brewer, Nile Breweries Limited (NBL), registered a 23% growth for the six month period ending on September 30, 2010, buoyed by increased capacity and strong momentum from an expanded portfolio of brands.
"Our brand portfolio is performing well across the board," said Nick Jenkinson, Managing Director, Nile Breweries Limited.
He attributed the company's impressive performance to internal efficiency and favourable external factors.
"Nile Breweries' key sales drivers included our new production capacity, ample rain and harvests, lower food prices, continued momentum for mainstream brands from the longneck bottle, and our premium brands' growing traction in the marketplace, particularly Nile Gold and Castle Milk Stout," Managing Director Nick Jenkinson added.
Similarly, Nile Breweries' half year performance was influenced by the stable government excise tax on the company's brands.
"Our growth has been supported by the excise status quo, which the government has maintained at 20% for local non-malt beers and 60% for imported malt beers in the 2010/11 National budget," said Onapito Ekomoloit, the Company's Corporate Affairs Director.
Meanwhile, the overall SABMiller Africa lager volumes for those six months grew 11% on an organic basis, supported by the stablised economy in Zimbabwe, after the effective adoption of the US dollar as its currency.
Zambia grew its volumes by 15%, benefiting from an excise reduction at the start of the financial year, while in Botswana, volumes continued to decline due to the negative impact of the 30% alcohol levy.
Tanzania registered good growth of SABMiller brands, specifically in the local premium segment, however, lager volumes were level with the previous year.
Lager volumes in Mozambique grew 10%, assisted by strong local premium brand performance and the additional capacity installed in the northern part of the country last year.
Angola had strong lager volume growth, supported by the new Luanda brewery capacity. SABMiller associate Castel delivered 4% volume growth.
Soft drink volumes in Africa registered a 5% increase, with Angola soft drinks level with the prior year.
SABMiller's overall half year results indicate that lager volumes grew by 1% compared to the previous year, with volume performance remaining mixed across key countries, while soft drink volumes were 2% ahead of the prior year, on an organic basis.
In Asia, Lager volumes grew by 10% on an organic basis during the first half of the year. China saw a 9% growth on an organic basis in the first quarter, constrained by poor weather, but volumes grew by 16% in the second quarter. The volume growth was supported by investment in both sales and marketing activities.
Lager volumes in Latin America were marginally down compared to the prior year, while soft drink volumes were down 2% across the Central American markets, which were impacted by poor weather and a difficult economic environment.
Europe's lager volumes were down 5% due to the weak economic conditions across the region. In Poland, beer volumes were down 6%, with significant competitor activity in the economic segment which led to the down trading.
In South Africa, lager volumes were up 3% during the first half in a growing market. The volume surge was supported by strong brand building and the impact of the 2010 FIFA World Cup. The soft drink volume growth benefited from the cold and wet weather experienced at the beginning of the year, which gave way to warm and dry conditions in the second quarter and our soft drinks' growth strategy.
This SABMiller subsidiary news release has been translated from its local market language to English language for publication on www.sabmiller.com. We have attempted to provide an accurate translation of the original material but due to the difficulties of translation slight differences may exist.
Note: This news release was first published in its local market on 21/10/2010.