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Brewer SABMiller PLC (SAB.LN) Friday reported flat sales volume for its fiscal first quarter as the economic downturn weighted on consumer demand, and said its financial performance for the quarter was in line with its expectations.

SABMiller, the world's second-biggest brewer by volume after Anheuser-Busch Inbev NV (ABI.BT), said its core lager volume, which strips out the effect of acquisitions and disposals, was flat in the quarter ended June 30 from a year earlier, in line with expectations.

That compares with a 1% fall in the fourth-quarter of fiscal 2009 and third-quarter.

Soft drinks volume rose 2% in the first-quarter, driven by strong sales in Africa.

"The global economic slowdown has continued to dampen consumer demand, although the impact on volumes has varied between our markets," Chief Executive Graham Mackay said in a statement.

"Across the group, revenue benefited from firm pricing in the prior year, and we continued to focus on cost efficiencies and, in certain markets, restructuring activities in order to reduce our cost base," he said. SABMiller is holding its annual shareholder meeting Friday.

The London-based company, which counts Grolsch, Peroni Nastro Azzurro, Castle Lager and Pilsner Urquell among its brands, warned in May that there was very little visibility as to the timing of any recovery, as the global recession subdued demand across its markets.

The company has suffered as consumers, particularly in Europe, cut back on drinking during the economic downturn.

At 1023 GMT, SABMiller shares were down 15 pence, or 1.1%, at 1382 pence in a lower London market. The shares have risen 19% since January on hopes brewers can weather the economic storm amid easing cost pressures and strong summer weather.

Company Web site: www.sabmiller.com

-By Michael Carolan, Dow Jones Newswires; 44-20-7842-9278; michael.carolan@dowjones.com