Brewer SABMiller: Profits higher on emerging market growth

Brewer SABMiller posted rising first-half net profits on Thursday, boosted once again by strong growth in emerging markets. Earnings after taxation rose by almost nine percent to $1.714 billion (1.276 billion euros) in the six months to the end of September, compared with $1.579 billion a year earlier, the firm revealed in a results statement. "We have continued to deliver on the potential of our businesses in both developed and developing markets," said chief executive Alan Clark. The maker of Grolsch and Miller Lite added that lager volumes rose by one percent on an organic basis, as strong growth in Africa offset declines in Europe and North America. Revenue, including income from associate and joint-venture groups, edged higher to $13.79 billion in the reporting period, in line with expectations. The group said it experienced "continued growth in our developing markets, driven by increased capacity, consumer reach and investment in brand portfolios". SABMiller, which is listed in London and Johannesburg, also produces other well-known beer brands including Peroni Nastro Azzuro and Pilsner Urquell. The company purchased Australian beer Foster's in 2011. In the same year, it set up a strategic alliance with Turkey's Anadolu Efes in order to grow beer sales in Central Asia, the Middle East, Turkey and Russia. Looking ahead, SABMiller cautioned on Thursday that currency depreciations against the dollar would weigh on its earnings next year. However, it forecast that trading conditions would remain "broadly unchanged" with growth continuing to be driven by developing markets.