SABMILLER Plc, the world's third-largest brewer, said third-quarter sales growth slowed after lower consumer spending and severe weather hurt demand in Colombia and Czechs drank less beer.
Beer sales rose four percent by volume in the three months through December excluding acquisitions, the London-based company said yesterday in a statement. That was less than the first half's 11 percent increase and the first quarter's 13 percent gain. It also missed the 7.3 percent median estimate of eight analysts surveyed by Bloomberg News.
SABMiller, which also said earnings are meeting its forecast, has predicted a tougher second half as surging commodity prices boost the cost of barley and sales slow in South America, where Colombians have pared spending after eight interest-rate increases. Russian sales also suffered compared to last year, when an unusually warm winter boosted demand.
"There is evidence here for the bears if you look at the top-line numbers," said Trevor Stirling, an analyst at Sanford C. Bernstein in London. "Colombia was very weak."
He also said the maker of Peroni Nastro Azzurro lager faced a hurdle in comparison with the year-earlier quarter's 10 percent gain in sales.
Third-quarter sales weakened from the first half or dropped in Latin America, Europe and South Africa, SABMiller's most profitable regions. Growth in sales of Miller beer to United States retailers was almost unchanged. Gains also deteriorated in Africa and Asia.
The brewer has said it faces "twin pressures" from investing in emerging markets as commodity costs rise. Restoring damage to margins from higher raw-material costs will take two to three years, Chief Executive Officer Graham Mackay has said.
Severe weather is helping to boost prices of agricultural commodities, and the aluminum used for beer cans also costs more.
Prices have been increased to recover higher raw-materials costs, according to the company.