SAB Miller has announced new investments in Africa and Peru as it reported a 3% increase in half-year lager volumes.
The brewer said it planned to invest $260m in increasing capacity at its subsidiaries in Uganda, Ghana, Zambia and Tanzania on the back of a 23% increase in half-year profits in its African operations.
It also plans to spend $295m to increase capacity at its Peruvian subsidiary Backus. Profits rose 16% in its Latin American operations in the past six months, reflecting good volume growth, positive mix and fixed cost efficiencies.
However profits dropped by 6% in both its North America and Europe operations due to lower volumes, higher costs and challenging economic and market conditions. Group sales rose 10%.
“Top and bottom line growth has been strong in most of our developing market businesses, propelled by our continued investment in brands, sales and marketing capability and production capacity,” confirmed CEO Graham Mackay.
“Market conditions have remained challenging in the USA and much of Europe and increases in input costs have continued, as expected.”