SABMiller profit up despite downturn

Brewer SABMiller has posted a nine per cent rise in profits for the first half despite weakening consumer demand.

Net profit for the six months to September 30th rose to $1.4 billion from $958 million a year earlier.

The group, which makes Grolsch and Peroni Nastro Azzurro brands of lager, said conditions were varied across the world.

North American earnings were up strongly due to its MillerCoors joint venture but sales fell in South Africa.

In Europe, sales grew two per cent but profits were down six per cent as costs rose sharply, impacting margins.

Graham Mackay, chief executive of SABMiller, said: "Exceptional prior year volume growth and weakening consumer demand in certain markets presented a challenging start to the year."

In its outlook, the group was cautious and warned the consumer downturn would continue to affect sales while cost pressures and the strength of the US dollar would adversely affect margins.

The company said it is reviewing spending and investment plans "in light of the uncertain environment".

By 12:35 GMT, stocks in London-based SABMiller had fallen 0.11 per cent to 904.5p.