Brewer SABMiller reported profit growth for the first five months of its financial year today, boosting its shares even while its Miller brand continued to lose volume.
The maker of Miller Lite, Pilsner Urquell and Castle beers said its financial performance in the five months to August 31st was strong, with businesses in Europe, South Africa, the rest of Africa and Asia delivering good earnings growth.
But the group, which acquired US brewer Miller in July 2002, said Miller beer volumes fell 4.5 per cent for the period to mid-September, while it faced tough competition in carbonated soft drinks in Central America.
But analysts focused on solid growth around the globe with underlying beer volumes up 4 per cent worldwide, adding that Miller's problems were largely as expected.
SABMiller shocked investors in May by saying it would take three years to turn around Miller, which has been losing sales and market share for years as it battles the world's biggest brewer, Anheuser-Busch, maker of Budweiser beer and which controls half the US beer market.
Although Miller's domestic market share is down to around 19 per cent, it is continuing a cost-cutting drive while looking to a big new marketing push behind the Miller brand.
SABMiller, formerly known as South African Breweries before its $5.6 billion acquisition of Miller, will announce results for the six months to end-September on November 21st.