African beer boosts SAB

A GROWING taste for beer across Europe, Africa and Latin America offset troubles caused by the strong dollar and a trading slowdown in north America for beer giant SABMiller.

The Peroni maker, which is in the process of being bought by Anheuser-Busch InBev in a £75bn deal, reported a better-than-expected 7pc rise in underlying third-quarter sales and volumes grew by 4pc.

Chief executive Alan Clark, who is expected to receive a £48m share windfall when the deal completes, said the period to the end of December was a ‘very strong quarter’ citing revenue growth up 12pc in Africa and 8pc in Latin America – led by Colombia. However US revenues fell 1pc. Mild weather prior to Christmas helped its sales in Europe with revenues up 6pc where its performance in Poland had improved.

Analysts at Credit Suisse said it was fighting back in Poland where it had underperformed.

Beer brands Peroni and Grolsch and London’s Meantime brewery are expected to be sold as Anheuser-Busch InBev tries to avoid competition concerns. A number of beer groups and private equity investors are reported to be interested.

Analysts at Citi said SAB’s shares trade at a 6.5pc discount to the offer price made by InBev, which ‘represents an attractive return for investors on a six to 12 months view in the current environment.’

Shares rose 0.62pc or 25.5p to 4149p.