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Emerging markets lift SABMiller earnings

Nov 18 2010 10:07 Reuters

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London - Brewing giant SABMiller [JSE:SAB] expects trading in most of its key emerging markets to  improve steadily as the Miller Lite and Peroni brewer beat forecasts on Thursday with a 16% rise in half-year earnings.

The world's second biggest brewer which earns over 80% of its profits from emerging markets said that although consumer spending remains subdued it will benefit from lower raw material costs and price rises for its beers.

The brewer of Grolsch and Pilsner Urquell reported strong profits growth from Latin America, Africa, Asia and North America but European profits fell as economic conditions hit consumer spending and encouraged downtrading to cheaper beers.

"Although consumer spending remains subdued, the trend of incremental improvement in economic conditions across most of our emerging markets is expected to be maintained," Chief Executive Graham Mackay said in a results statement.

The London-based group reported adjusted earnings per share of 93 US cents for the six months to end-September, compared to 88.7 cents from a company compiled consensus. The half-year dividend rose 15% to 19.5 cents a share.
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