SABMiller sees sales in Russia go down by 6% in Oct-Dec 2011
MOSCOW. Jan 19 (Interfax) - SABMiller plc, in the third financial quarter ending December 31, 2011, saw its sales in Russia decrease by 6% in natural terms, the company said in a statement.
The decline in sales was driven by contraction on the Russian beer market, SABMiller said.
Sales in the first financial quarter (April-June) went up by 11% but decreased in the second quarter in comparison with the anomalously hot summer in 2010. Sales in the first financial half (April-September 2012) increased by 3%.
Sales in Europe, which includes Russia, beer sales went down by 3% in October-December. However, SABMiller's sale sin Ukraine increased by 20%.
Total increase in beer sales in all regions were SABMiller has a presence came to 3%. Organic growth reached 7%.
SABMiller was formed through the merger of U.S. company Miller Brewing and South African Breweries. SABMiller has had operators in Russia since 1998. The company owns LLC SAB Miller Rus (Kaluga Beer Brewer Company) and LLC Vladpivo, which is the biggest beer producer in Russia's Far East able to produce 10 million decaliters a year. The company produces Grolsch, Miller, Pilsner Urquell, Kozel and other beer brands.
SABMiller reached an agreement in October to form an alliance with Turkey's Anadolu Efes. According to this agreement, SABMiller will transfer its beer operations in Russia and Ukraine to Efes in exchange for 24% of the capital in the Turkish company. The main shareholder in Efes, Anadolu Group, will retain a 42.8% stake. The synergy from the merger of operations in Russia is estimated at $120 million per year.
SABMiller expects the transaction to close by the end of this financial year (March 31, 2012).