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London - SABMiller [JSE:SAB] reported a rise in profits for the first half of its financial year, as strength in Africa helped offset declining beer sales in Europe and North America.
SABMiller, the world's second-largest brewer, said emerging markets would continue to drive sales and earnings while European and North American consumers drink less beer.
Other companies including Unilever and Diageo have reported a slowdown in emerging markets such as China and Brazil but SABMiller said it was upbeat on the outlook for Latin America, Africa and Asia.
The maker of Peroni, Grolsch and Miller Lite cited particular strength in Ghana, Nigeria, Tanzania and Zambia where urban populations are growing and trading up to branded beer from home-brewed alcohol.
"Amid widespread concerns around slowing economies, particularly in emerging markets, we believe that the underlying fundamentals of our key developing markets remain in tact," SABMiller Chief Executive Officer Alan Clark said on Thursday.
"This includes growth drivers such as growing population, increasing urbanization, progressively aspirational consumers and opportunities to gain market share from the illicit trade."
The brewer has leading positions in Africa, China and the Andean region of Latin America.
Earnings before interest, taxes, depreciation and amortization rose 7% to $3.27bn in the six months ended 30 September. That was ahead of analysts' average estimate of $3.22bon, according to a company-supplied consensus.
Lager sales by volume rose 1%. Gains of 9% in Africa, 4% in Asia Pacific and 1% in Latin America were tempered by declines of 4%in Europe and 3% in North America.
"Looking forward to the second half of the year, we expect trading conditions to remain broadly unchanged, with volume growth continuing to be driven by emerging markets," chief executive officer Alan Clark told reporters.
Shares of the company, which had fallen nearly 10% in the past six months, were up 0.6% at 3255.5 pence at 10:30 on Thursday.
Earnings on a per-share basis were $1.20, slightly below analysts' average estimate of $1.21.
"Europe is trading below our expectations," chief financial officer Jamie Wilson said, noting that the region has been tough for a number of quarters. "We see the economies there continuing to perform sluggishly, so that is not a surprise to us." Net producer revenue, which excludes excise and similar taxes, was $13.79bn, in line with estimates.
