Brewer SABMiller says net profits boosted by disposal

13th November 2014, Comments 0 comments

British drinks giant SABMiller said Thursday that the sale of its stake in South African leisure unit Tsogo Sun boosted first-half net profits but warned over "challenging" trade.

Earnings after taxation rose 15 percent to $1.

97 billion (1.

59 billion euros) in the six months to September from a year earlier and revenues grew two percent to $11.

37 billion, it said in a results statement.

The brewer took a $388-million exceptional gain, after costs, on the disposal of its holding in Tsogo Sun.

SABMiller was buoyed by cost-cutting and a "strong" performance in its soft drinks business in Africa, Latin America and Europe.

However, lager volumes fell slightly in the period on weaker demand in Europe and parts of Asia, including Australia and China.

"We anticipate that trading conditions will remain challenging," the group warned.

SABMiller, which is listed in London and Johannesburg, is the world's second largest brewer behind Belgium's Anheuser-Busch InBev.

It produces lagers including Foster's, Grolsch, Peroni and Miller Genuine Draft.

In September, Dutch drinks giant Heineken had rejected a takeover bid from SABMiller for an unspecified amount.

© 2014 AFP

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