SAB Miller’s local brands offset weakness

A growing taste for Pilsner Urquell and Peroni in the UK and the growth of local beer brands in emerging markets helped SAB Miller post a 3.9% rise in net profit in the face of weak sales across Europe and the US.

The brewer said although earnings in Europe were down 15%, Africa, with brands such as Hero and South America offset the developed regions’ decline. Net profit for the year to April was $3.38 billion (£2 billion) while earnings, before interest, taxation and amortisation, rose 1.2% to $6.45 billion — just ahead of forecasts.

Chief executive Alan Clark said: “Europe’s economy continues to have a difficult time. But we are now expecting to see the beginning of improvements.”

Clark said the group continued to cut costs and is targeting savings of about $500 million a year by 2018 but currency fluctuations continued to be an issue. He said its’ “strategy to appeal to more consumers on more occasions” remained its focus and innovations such as flavoured beer and new packaging will help growth.

In the UK its sales were ahead of the wider lager market, up 5% and launches such as a small version of Peroni called Piccola, aimed at the pre-dinner drinks market, will boost sales.