- SABMiller reported an 18% drop in profits to $2.33 billion for the first half of the fiscal year, down from $2.83 billion last year, attributed in part to currency headwinds.
- Revenue saw a 12% decline to $9.99 billion, but increased 5% at constant currency.
- Lager volumes were flat globally, while soft drinks volumes rose 4%, a recent trend that is happening for the company.
SABMiller's biggest news is this week's formalization of its takeover offer by Anheuser-Busch InBev, which includes selling off its stake in joint venture MillerCoors to its partner Molson Coors, which will become the second-largest beer company in the U.S. Together, AB InBev and SABMiller would control about 30% of the global beer market.
Lagers and light beers in general have seen sales tumble and a smaller market share, which has tumbled from 35.5% of the U.S. beer market in 2007 to 31.8%, with craft and imported beers both assuming larger shares.
SABMiller reported net producer revenue gains in Latin America and Africa of 8% and 9% respectively at constant currency, but lower volumes in Europe and the U.S. offset those gains. SABMiller could offer AB InBev increased access to those markets post-merger.
SABMiller employees, which currently number about 69,000, have voiced concerns about their jobs following the takeover. This is especially true with AB InBev eyeing about $1.4 billion in annual savings post-merger.
Molson Coors also stands to benefit from this takeover, as the company's supply buying power will be four times greater following its possible $12 billion deal for MillerCoors LLC and the Miller beer brands, Molson Coors CEO Mark Hunter told The Wall Street Journal.