SABmiller sees Africa expansion pay off as continent booms
SABmiller sales crept up in the last quarter as the world’s second largest beverage firm’s focus on African markets paid off it emerged yesterday.
The company recorded a two per cent increase in lager sales driven by strong demand in South Africa and a recovery in the Chinese market.
Africa saw total drink sales rise nine per cent, with net revenues for the region growing 12 per cent. The firm has focussed heavily on the continent this year, pushing its cheaper brands such as Chibuku Super and Impala.
In March the company stated it is targeting 10 per cent plus revenue growth in the medium term for the region.
North America proved to be the biggest drag on volumes and revenues after domestic sales fell 2.7 per cent with the firm blaming the strong dollar for the fall.
Overall volumes during the three months ending 31 March increased by four per cent, leading to a six per cent increase in net revenues during the period. Investors reacted positively to the news with shares closing up 1.42 per cent.