SABMiller Q3 NPR grew by 4%
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In Latin America, group NPR grew by 5% in the third quarter. Beverage volumes increased by 2%, with soft drink volumes up 4%, driven by company's non-alcoholic malt brands, and lager volumes up 1%. In Colombia, group NPR grew by 5% with beverage volumes increasing by 1% and lager volumes decreasing by 1%.
Lager volume performance was impacted by a shift in consumer spending patterns, along with pressure on disposable income driven by increased levels of household debt and rising inflation. This was partially offset by strong trading over the peak December period. Sales of company's above mainstream brand Aguila Light, particularly in bulk packs, continued to grow, offsetting softer performance in other mainstream brands.
Company's local premium Club Colombia range also contributed positively to mix. In Peru, group NPR growth of 5% was supported by beverage volume growth of 3% with consumers continuing to trade up to company's above mainstream brand Pilsen Callao, which grew by double digits, offsetting a decline in company's premium Cusqueña brand.
In Ecuador, beverage volumes were level while group NPR grew by 8%, driven by positive mix from the continued strong growth of company's above mainstream brand Pilsener Light, and the benefit of the prior year price increase. In Central America, group NPR grew by 1% driven by beverage volume growth.
Group NPR in Africa grew by 7% in the quarter driven by beverage volume growth of 4%, together with pricing and continued improvement in the premium category. Lager volumes increased by 3%, while soft drinks volumes grew by 5%. In South Africa, group NPR grew by 6% driven by positive pack and brand mix in lager which grew NPR by 8%. Both lager and soft drinks volumes grew by 2%, with continued strong growth in Castle Lite.
Group NPR in Tanzania grew by 5% underpinned by pricing, positive lager segment mix and growth in wines and spirits, while lager volumes declined by 9% reflecting excise-related and other pricing in July 2014. In Mozambique, group NPR grew by 26%, and lager volumes by 21%, supported by strong performance of Castle Lite and a focus on affordability through the Impala brand. Group NPR in Zambia grew by 2% reflecting price increases in both lager and soft drinks.
Lager volumes declined by 11% due to the continuing impact of the excise-related price increases in January 2014. In Nigeria, strong group NPR growth continued, up 33%, driven by volume growth of 27% supported by market execution and incremental capacity. Group NPR in Zimbabwe declined by 10% reflecting continued economic challenges.
Castel delivered high-single digit growth in group NPR, supported by mid-single digit volume growth in both lager and soft drinks. Soft drinks volume growth in Africa was driven by South Africa, Ghana, Nigeria, Zambia and company's associate Castel.
Asia Pacific group NPR declined by 2%. The beverage volume decline of 7% was partially offset by group NPR per hl growth of 6%, which principally reflected the impact of changes in geographic mix. In Australia, group NPR was level as growth in group NPR per hl of 1% was offset by a volume decline of 1%, outperforming the market.
Volumes continue to be adversely impacted by competitive price pressure and reduced consumer spending due to negative sentiment. Continuing positive momentum in the contemporary and premium segments supported group NPR growth, together with price increases. In China, group NPR declined by 7% driven by a volume decline of 9%, with double digit declines in the northeast and central provinces with the continuing impact of the previous quarter's adverse weather conditions in key regions.
Group NPR per hl growth of 2% was driven by favourable brand mix resulting from the strong growth in premium lager volumes, with limited price increases. In India, group NPR grew by 3% driven by group NPR per hl growth of 8% partially offset by a volume decline of 5%, reflecting some trade destocking.
In Europe, group NPR grew by 3%, driven by beverage volume growth of 2% with lager volumes also up 2%. Group NPR growth was achieved despite a low inflationary environment, although assisted by cycling a soft comparative prior year quarter.
In the integrated Czech Republic and Slovakia business, group NPR was up by 4% with volume growth of 5% reflecting good performance in both countries, although channel mix and price promotion trends were adverse. In Poland, volumes grew by 2%, although group NPR declined by 4% due to higher levels of trade investment together with adverse brand and channel mix.
In the United Kingdom, group NPR declined by 5% reflecting declines in the Polish brand portfolio, together with a decline in Ireland of Miller Genuine Draft, while Peroni Nastro Azzurro continued to grow by double digits. Group NPR growth was delivered in Italy and Romania against a subdued prior year quarter although market conditions continued to be challenging.
Anadolu Efes' soft drinks volumes were suppressed by a sharp decline in consumer confidence in the Turkish market in the quarter. Lager volumes continue to be adversely impacted primarily by the declining beer market in Russia.
North America group NPR declined by 1%, reflecting a 1% decline in MillerCoors' group NPR, driven by lower volumes, partially offset by higher net pricing and favourable brand mix. US domestic sales to retailers (STRs) declined by 1.7%.
Premium light STRs declined low-single digits. Miller Lite continued to benefit from the return to its original iconography and intrinsic-focused marketing campaign, posting its first quarter of volume growth since 2007, with low-single digit growth in STRs.
Coors Light volumes declined low-single digits. Within above premium, STRs increased by low-single digits driven by high-single digit growth for the Redd's franchise and brand innovations such as Miller Fortune and Smith & Forge Hard Cider. Blue Moon and the Leinenkugel's portfolio, together, were in line. The below premium portfolio declined mid-single digits.
Miller High Life was down low-single digits, an improved quarterly trend on the strength of its current marketing campaign and associated packaging. Steel Reserve grew mid-single digits due to the performance of its "Alloy" series. Domestic sales to wholesalers (STWs) declined by 3.7%. ■