SABMiller's Africa lager volumes up

The group noted that Uganda continued its strong performance with lager volumes 18% ahead of the prior year supported by capacity commissioned during the second quarter, while lager volumes in Zambia grew 23% assisted by the excise reduction in March 2009.

Mozambique lager volumes grew 7% reflecting increased distribution and marketing initiatives.

SABMiller's associate Castel continued to perform well, particularly in Angola.

Tanzania held market share although lager volumes were 6% below the prior year as the group cycled strong comparative growth and the effects of a soft economy were compounded by drought in the north.

Botswana continued to be impacted by the 30% social levy on alcohol introduced in November 2008 which, combined with an economic slowdown, drove lager volumes down 47%.

In South Africa, SABMiller's lager volumes were 3% down and market share declined marginally during the period, in a market that continued to be impacted by reduced consumer spending and lower sales in the Western Cape, as a result of the restrictions on the sale of alcoholic beverages.

Soft drinks volumes were down 2%, in line with the market, it said.

The group reported that overall lager volumes for the first six months, on an organic basis, declined by 1% compared to the prior year, reflecting difficult trading conditions across many of the group's markets, while soft drinks volumes were 1% ahead.

During the period, group revenue was supported by price increases taken in the prior year. Financial performance for the half year was in line with SABMiller's expectations, it said.

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