SABMiller Sales Boosted By Strong Volumes In Asia, Africa

SABMiller PLC (SBMRY), the FTSE 100 brewer pursuing a multi-billion dollar takeover of Australia's Foster's Group Ltd. (FGL.AU), Thursday posted a rise in first-quarter sales on higher volumes, driven by robust demand in emerging markets.

SABMiller, the world's second-biggest brewer by volume after Anheuser-Busch InBev NV (ABI.BT), benefited from a strong performance in Asia and Africa, where socio-economic improvement, rising incomes and a thirst for Western lifestyles are fuelling consumption. That helped offset sluggish growth in more mature markets which are suffering from a cutback in consumer spending, high unemployment levels and a saturated marketplace.

Sales, excluding acquisitions and disposals, rose 7% in the first three months of the fiscal year on a constant currency basis, boosted by price increases and more purchases of higher-priced products. Sales per hectoliter were up 2%.

Lager and soft drinks volumes rose 5%, compared with a 1% drop a year earlier.

The maker of Grolsch, Peroni Nastro Azzuro and Miller Lite continues to increase brand investment in developing economies, which also include Latin America and Eastern Europe.

Emerging markets currently account for around 80% of the company's earnings, which has helped it outperform rivals in recent years. Sales in Western Europe and North America have weakened as government austerity measures hit the spending power of cash-strapped drinkers.

So the company's US$9.98 billion bid for Foster's Group has surprised some industry observers, given the Australian beermaker's presence in mature markets. The offer was rejected by the Melbourne-based group last month. Analysts expect SABMiller to return with a higher offer, although the company remained tightlipped on the topic Thursday.

Previously, SABMiller guided for a low single digit increase in input costs in fiscal 2012.

At 1009GMT, the company's shares were down 14 pence, or 0.6%, at 2301 pence, in a lower London market.

By Simon Zekaria, Dow Jones Newswires; [phone]; [e-mail]