Britain-based brewer SABMiller suffered a drop in annual net profit after exceptional gains the previous year, the firm reported on Thursday but said that underlying performance improved on strong growth in emerging markets.
SABMiller said that profit after tax dropped by 22.0 percent to $3.274 billion (2.55 billion euros) in the year to March 31 compared with the outcome in 2011-12.
Last year’s result was boosted by an exceptional gain of $1.0 billion, most of which came from the disposal of its Russian and Ukrainian businesses alongside a strategic alliance with Turkish peer Anadolu Efes.
The 2012-13 performance was hampered also by higher costs.
But underlying pre-tax profits grew by 14.0 percent to $6.421 billion, the maker of Grolsch, Peroni and Miller added in a statement.
Group revenue grew 10 percent to $34.487 billion.
“I am delighted to report another year of significant progress and strong results for the group,” SABMiller’s acting chairman John Manser said in the earnings statement.
“Strong growth in our developing markets was supported by investments in additional capacity, commercial capability and distribution reach. Group revenue grew by 10 percent and the focus on operating efficiencies helped us achieve growth in profit margins,” he added.
SABMiller said it enjoyed strong growth in Africa, Latin America, Asia Pacific and South Africa.
The brewer’s earnings update comes a month after its chief executive Graham Mackay had surgery for a brain tumour, causing him to step down earlier than planned to be replaced by SABMiller’s chief operating officer Alan Clark.
Mackay, who was also chairman, relinquished that role to Manser. The company gave no update of Mackay’s health in Thursday’s statement.
SABMiller, which purchased Australian beer giant Foster’s in 2011, is listed in London and Johannesburg.
SABMiller profits fall but emerging markets grow
