SABMiller, the world’s second-largest brewer, reported sales for the first quarter that missed analysts’ estimates amid tough trading conditions in Europe.
Revenue advanced 3 per cent on an organic, constant-currency basis in the three months through June, the London-based maker of Grolsch and Peroni said in a statement Thursday. Analysts expected a 3.8 per cent gain, according to the median of 18 estimates. Lager volume fell one per cent.
Growth in Latin America and Africa was tempered by a challenging quarter in Europe and weaker volume in China, chief executive officer Alan Clark said in the statement.
The world’s largest brewers are increasingly depending on emerging markets amid stagnant sales in Europe and North America. SABMiller warned in May that it expected currency headwinds and business conditions to remain challenging. To adapt to a craft-beer boom that has hurt sales of bigger established brands, SABMiller this year acquired Meantime Brewing Co., an independent London-based brewer.
Analysts expected a 1 per cent increase in lager volume, according to the median of 15 estimates. SABMiller reports net producer revenue, which does not include excise duty and similar taxes.
All the major currencies that SABMiller operates in have declined against the dollar during the period, which reduced the value of sales abroad when translated into dollars, the company’s reporting currency.
Bloomberg News, edited by ESM