E-Malt.com News article: 2653

UK, London: The world's second-biggest brewer, SABMiller, which is in a takeover fight for China's Harbin Brewery, was expected to report a big jump in profit on Thursday, helped by a strong turnaround at US unit Miller, analysts said on Friday. The London-based maker of Miller Lite, Castle and Peroni beers was likely to show results boosted by its recent acquisitions and their subsequent upturn in trading, including Miller and its Honduras business, the analysts added.

Its South African business, which accounts for around 35 % of group earnings, will have been boosted by stronger beer and soft drink volumes in the year.

They expected SABMiller to report earnings before interest, tax and amortization of $1.743 billion (R11.3 billion) to $1.848 billion compared with $1.279 billion previously when it reports results for the year to March on May 20. Earnings a share at the group known as SA Breweries before it bought Miller in 2002, were expected to rise to between $0.71 and $0.73 a share compared with $0.54 previously.

At Miller, the group has said it is on schedule to see stable beer volumes by the final year of its three-year turnover plan during next year and 2006 after years of decline at the US brewer.

The revival at Miller has been led by increased sales of its top brand Miller Lite, which accounts for two-thirds of Miller profit, and has been boosted by the popularity of the low-carbohydrate Atkins Diet in the US.

SABMiller shares have outperformed the FTSE-100 index by 20 percent in the past year. SABMiller added 60c to R70.50 yesterday. The beverages sector gained 0.89 percent.


19 May, 2004