SABMiller's slow increase in Europe

British brewer SABMiller plc said its financial performance for six months was in line with the group's expectations. Additionally, the company warned that the prospects for the rest of the financial year increasingly uncertain.

 Issuing
a trading update for the first half ended 30 September 2008, the
maker of Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft
and Grolsch said group revenue growth has been assisted by firm
pricing, with revenue per hl at constant exchange rates growing more
than 5%, which has continued to offset the impact of higher input
costs.
SABMiller, having brewing and beverage interests in more
than 60 countries across six continents, said the group recorded 3%
growth in lager volumes, with organic lager volumes marginally ahead
of the prior year, reflecting a high comparable and moderating
consumer demand in many markets. The company reported a 1% rise in
second-quarter organic lager volumes.
In Europe, lager volume
growth, on an organic basis, was 2%. Poland achieved organic domestic
volume growth of 4%. Romania volumes grew 24%, driven by the
Timisoreana and Ursus brands. Organic volumes in Russia dropped 4%,
hurt by the effect of sustained high inflation on consumer demand and
de-stocking of wholesale inventories towards the end of the period.
Czech Republic domestic volumes declined 5%, but the trend has
improved in recent months in response to trade and marketing
initiatives, the company said.