Brewer SABMiller reported a 49 per cent rise in annual core profit and said today its turnaround of Miller was gaining momentum.
The London-based maker of Miller Lite, Castle and Peroni beers posted earnings before interest, tax and amortisation (EBITA) of $1.893 billion, just above analyst forecasts of $1.743 billion to $1.848 billion for the year to March 31st, on annual turnover up 41 per cent at $12.645 billion.
SABMiller, in a takeover fight for China's Harbin Brewery, said the turnaround of US brewer Miller was on track and showing momentum, with annual volumes down 0.8 per cent after second-half volumes rose 5.3 per cent.
SABMiller has promised to turn around Miller within three years and has said it is on schedule to see stable beer volumes by the final year of this plan during 2005-2006.
SABMiller is also battling Anheuser-Busch for control of China's number four brewer Harbin Brewery.
The US brewer has bought a 29 per cent Harbin stake which has prompted SABMiller, which holds 29.4 per cent, to launch a $533 million bid for Harbin, based in northeast China.
The company proposed an annual dividend up 20 per cent at 30 US cents a share, while adjusted earnings per share rose 44 per cent to 77.6 US cents a share against analyst forecasts of between 71 and 73.1 US cents.
SABMiller shares have outperformed the FTSE-100 Index by 20 per cent in the past year. They closed up 3.7 per cent at 621 pence yesterday.