Beer giant SABMiller reports 16% fall in pre-tax profits

Beer maker SABMiller has reported a 16 per cent fall in adjusted full-year pre-tax profit to $4.1 billion as it counted the cost of its tie-up with Anheuser-Busch InBev and charges linked to its African operations.

The London-based firm was stung by a $573 million impairment charge related to investments in Angola and South Sudan and $160 million in merger costs.

The firm is offloading several assets — including Peroni, Grolsch and Meantime - as it moves to appease regulators ahead of the £71 billion mega merger with ABInBev, which will create a drinks giant controlling 30 per cent of the global beer market.

Revenues were down 10 per cent at $19.83 billion as the firm was hit by currency headwinds linked to the stronger dollar. Nevertheless, chief executive Alan Clark said “these are good results”.

He added: “This performance reflects our focus on driving superior growth by strengthening our core brands, expanding the beer category to reach more consumers on more occasions and placing an emphasis on premiumisation in all regions.”

Reuters