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SABMiller PLC - Interim Results

RNS Number:7716H
SABMiller PLC
15 November 2007










15 November 2007

                 SABMILLER REPORTS STRONG GROWTH IN FIRST HALF


SABMiller plc, one of the world's leading brewers with operations and
distribution agreements in over 60 countries across six continents, today
reports its interim (unaudited) results for the six months to 30 September 2007.


Operational Highlights

   * Group lager volumes up 15% to 135 million hectolitres (hl), organic
growth of 11%
   * EBITA up 14%, and 10% on an organic constant currency basis
   * Double digit volume growth in Europe with EBITA up 29%
   * Miller returns to growth in the US with organic sales to retailers up
1.4% - EBITA up 19%
   * Lager volumes in Latin America up 8%, in line with expectations -
investment in brands and distribution depress margin in the current period
   * Africa & Asia lager volumes increase by 29% - driven by China and India
   * South Africa lager volume growth of 2% despite the expected loss of
premium volumes
   * Increased capital investment to provide for continuing growth

      --------------------------------  --------  --------  --------  --------
                                          Sept      Sept               March

                                          2007      2006         %      2007

                                          US$m      US$m    change      US$m
      --------------------------------  --------  -------- --------   --------


 Revenue (a)                            10,781     9,344        15    18,620


 EBITA (b)                               2,036     1,781        14     3,591


 Adjusted profit before tax (c)          1,773     1,533        15     3,154

 Profit before tax                       1,579     1,378        14     2,804


 Adjusted earnings (d)                   1,036       846        22     1,796


 Adjusted earnings per share (d)

                            - US cents    69.1      56.6        22     120.0

                            - UK pence    34.5      30.5        13      63.4

                            - SA cents   492.0     385.2        28     847.2

 Basic earnings per share (US cents)      63.9      52.9        20     110.2


 Interim dividend per share (US cents)    16.0      14.0        14
 --------------------------------       --------  --------  --------  --------



Graham Mackay, Chief Executive Officer of SABMiller, said:


"This has been a good start to the year, demonstrating the strength of our brand
portfolio and the health of our businesses. We have delivered another excellent
performance in Europe, a pleasing return to growth in North America, and our
Asian businesses have continued their momentum and made market share gains. At
the second anniversary of our Bavaria transaction, our volumes have grown
strongly in Latin America and our investment plans remain on track."

(a)     Revenue excludes the attributable share of associates' revenue of
US$1,242 million (2006: US$1,052 million).

(b)     Note 2 provides a reconciliation of operating profit to EBITA which is
defined as operating profit before exceptional items and amortisation of
intangible assets (excluding software) but includes the group's share of
associates' operating profit, on a similar basis. EBITA is used throughout the
interim announcement.

(c)     Adjusted profit before tax comprises EBITA less net finance costs of
US$258 million (2006: US$242 million) and share of associates' net finance costs
of US$5 million (2006: US$6 million).

(d)     A reconciliation of adjusted earnings to the statutory measure of profit
attributable to equity shareholders is provided in note 5.






--------------------                ---------      ---------       -------------
Segmental EBITA performance            2007        Reported            Organic,
                                                                       constant
                                      EBITA          growth            currency
                                       US$m              %               growth
                                                                             %
--------------------                ---------      ---------       -------------

Latin America                           438             13                   2
Europe                                  622             29                  17
North America                           300             19                  19
Africa and Asia                         277             16                  13
South Africa: Beverages                 405             (2)                  3
South Africa: Hotels and Gaming          58             32                  38
Corporate                               (64)             -                   -
                                    ---------      ---------       -------------
Group                                 2,036             14                  10
                                    ---------      ---------       -------------



CHIEF EXECUTIVE'S REVIEW


Business review


The start to the year reflects the momentum in SABMiller's developing markets,
which are demonstrating stronger and more sustainable growth than in previous
economic cycles. Improving GDP levels and government finances and moderate rates
of inflation are supporting greater local infrastructure investment, which in
turn is enhancing consumer disposable income. The group's premium portfolio
strategy has also enabled it to capture value from the global drift to higher
margin products in its developing and developed markets, as consumers continue
to trade up. Despite challenging comparative growth rates during the comparable
six months of last year and higher input costs in the current period, the
business has reported organic growth in lager volumes of 11% and an increase in
EBITA of 10% on an organic, constant currency basis. As expected, the group
EBITA margin decreased slightly to 16.9%, 20 basis points below the prior year,
reflecting the change in mix of our segmental profits together with higher
marketing investment and input costs. Industry wide commodity cost increases
have been significant with the impact varying across regions reflecting
differing currency strengths and local sourcing conditions. In aggregate, our
price increases and productivity have offset these input cost rises.


These results, in aggregate, continue to demonstrate the value of the group's
diverse and strong brand portfolios, which include some 200 local and regional
beers. Total beverage volumes were 159 million hectolitres (hl). Total reported
lager volumes were up 15% to 135 million hl, including the impact of
acquisitions in China and India.


*         Miller Brewing Company delivered improved results in the US as a
result of its strategy to migrate the business' brand portfolio to higher
margin, higher growth segments. EBITA for the period was 19% higher than the
prior year, driven primarily by price increases and higher volumes, and includes
a favourable cost adjustment of US$16 million in respect of the prior year.
Total sales to retailers (STRs) grew by 1.4% on an organic basis and by 5.9% on
a reported basis, against a US beer industry which, excluding imports, grew at
1.0%. The flagship brand, Miller Lite, returned to solid growth, posting a 2.1%
gain in STRs, at the same time increasing its average case pricing by 2.1%, some
50 basis points ahead of its largest light beer competitor. Miller's worthmore
brand portfolio also delivered a strong performance.


*         After six years of double digit EBITA growth, Europe has recorded
another excellent performance with organic constant currency EBITA growth of
17%. This was driven by volume growth and market share gains in Poland, Russia
and Romania, assisted by warm weather across Eastern Europe during the first
quarter. Europe's premium brands recorded 13% volume growth, reflecting
successful initiatives to capture value from consumer trends towards premium
products. This growth in higher margin brands, in addition to price increases
and efficiency gains, mitigated the impact of significant increases in the cost
of raw materials, real wage increases and the negative mix effect of the strong
growth in cans in certain markets.

*         At the second anniversary of the Bavaria acquisition, the
implementation of our strategy to renovate the beer category in Latin America
remains on track, although the speed and scale of the initiatives being
implemented has led to some inevitable market dislocation during the period.
Lager volume growth of 8% for the half year is in line with the group's medium
term expectations, notwithstanding the high comparatives in the prior period and
a slowdown in spending on consumables in Colombia. The group remains confident
that the substantial activity underway to transform the category will deliver
significant volume and margin growth in the medium term.


*         The group's joint-venture in China, CR Snow, continued its very
strong performance, with organic volume growth of 22%, well ahead of the wider
Chinese beer market. All regions posted growth, with market share gains in the
Central and North Eastern provinces. The national brand, Snow, which now
accounts for over 70% of volumes, is expected to become the world's second
largest beer brand by volume within calendar year 2007. In India, our business
grew strongly, reporting lager volume growth of 28%. Capacity expansion and the
integration of last year's Foster's India acquisition represent key areas of
progress during the period. Momentum within Africa continued, with favourable
economic conditions driving good growth in Tanzania, Mozambique and Angola,
supported by ongoing brand renovations and improved execution in both sales and
distribution.


*         Lager volumes in South Africa grew by a pleasing 2% despite the
termination of the Amstel brand licence in March 2007. The expected loss of
premium volumes was mitigated by strong growth in Castle Lite and the successful
launch of a new premium brand offering, Hansa Marzen Gold, which already
represents some 3% of volumes for the half year. Mainstream lager volumes grew
by 5%, assisted by the absence of the National Lottery over the six month 
period. Total soft drink volumes were up an impressive 11% as the business also
benefited from a robust economic environment, with GDP growing by 5%.


*         On 9 October 2007, SABMiller and Molson Coors Brewing Company
announced that they had signed a letter of intent to combine the U.S. and Puerto
Rico operations of their respective subsidiaries, Miller and Coors, in a joint
venture. The transaction will create a stronger, brand-led U.S. brewer with the
scale, resources and distribution platform to compete more effectively in the
increasingly competitive U.S. marketplace. Definitive agreements are expected to
be signed in December 2007, but regulatory clearance is not expected before mid
2008.


Reported EBITA of US$2,036 million was up by 14% and included a 4% contribution
from favourable weighted average currency rates. Net cash generated from
operations before working capital movements was 13% above the prior year,
illustrating the overall strength of the trading performance and our strong cash
characteristics. The group's gearing decreased during the period to 43.5% from
45.8% at year end. Earnings benefited from currency strength in some major
markets and lower tax rates in certain jurisdictions. Adjusted earnings and
adjusted earnings per share are up by 22%, to US$1,036 million and 69.1 US cents
respectively for the first six month period. An interim dividend of 16 US cents
per share, a 14% increase, will be paid to shareholders on 21 December 2007.


Outlook

We have delivered a good first half performance, benefiting from the weighting
of our portfolio of businesses towards emerging markets, and a focus on
developing our premium brands. We are continuing to invest in our businesses to
drive revenues, which, together with ongoing productivity gains, are offsetting
industry wide cost pressures. We expect to make progress in the balance of the
year but face a more challenging environment.



Enquiries:
---------------                 
                 SABMiller plc                             Tel: +44 20 7659 0100

Sue Clark        Director of Corporate Affairs             Mob: +44 7850 285471

Gary Leibowitz   Senior Vice President, Investor Relations Mob: +44 7717 428540

Nigel Fairbrass  Head of Media Relations                   Mob: +44 7799 894265

A live webcast of the management presentation to analysts will begin at 9.00am 
(GMT) on 15 November 2007. 

This announcement, a copy of the slide presentation and video interviews with 
management are available on the SABMiller plc website at www.sabmiller.com. 
Video interviews with management can also be found at www.cantos.com.

High resolution images are available for the media to view and download free of
charge from www.newscast.co.uk

Copies of the press release and detailed Interim Announcement are available from
the Company Secretary at the Registered Office, or from 2 Jan Smuts Avenue,
Johannesburg, South Africa

Registered office: SABMiller House, Church Street West, Woking, Surrey GU21 6HS
        Incorporated in England and Wales (Registration Number 3528416)
                           Telephone: +44 1483 264000
                            Telefax: +44 1483 264117

--------------------------------------------------------------------------------

Operational review


Latin America

                                          Sept            Sept
                                          2007            2006
Financial summary                         US$m            US$m               %
---------------------------              -------         -------         -------

Revenue                                  2,453           2,012              22

EBITA*                                     438             387              13

EBITA margin (%)                          17.8            19.2

Sales volumes (hl 000
- Lager                                 17,757          16,460               8
- Soft drinks                            9,144           9,730              (6)
- Soft drinks - organic                  9,144           9,284              (2)
---------------------------              -------         -------        --------

* In 2007 before exceptional items of US$52 million (30/09/2006: US$24 million)
being integration and restructuring costs in Latin America, less the net profit
on the sale of soft drink and juice businesses in Costa Rica and Colombia
respectively.


The implementation of our strategy to renovate the beer category in the region
is on track with good initial signs of success. Lager volume growth of 8% for
the half year has been achieved, notwithstanding high comparatives in the prior
period, and we remain confident that our initiatives to transform the category
will deliver significant volume and profit margin growth in the medium term.
Reported EBITA performance for the first half has been aided by favourable
exchange rates. Organic constant currency EBITA growth was 2%, reflecting
substantial upfront investment in brand renovations and new brand launches.
Higher US dollar raw materials costs were offset by local currency appreciation,
pricing and productivity benefits. The EBITA margin declined by 140 basis
points, including 40 basis points from changes to invoicing of distribution
costs. These changes have also increased reported revenue growth by 200 basis
points but have no net effect on EBITA.


Lager volumes in Colombia increased by almost 8%, with slower growth recorded in
the latter part of the period, as higher consumer credit costs impacted spending
on consumables, and as the business started cycling high comparative growth
numbers. Beer's share of the alcohol market has increased steadily over the
period. Renovation of our brand portfolio has further widened the appeal of the
beer category and the recent upgrade of the market-leading Aguila brand,
re-launched with a new packaging design in an enlarged 330ml bottle, has led to
brand volumes increasing 9%. In the premium segment, volume growth has been
encouraging and Club Colombia grew by 50% in the half year. With the
introduction of the national pricing model in December last year, retail
mark-ups and regional pricing variability were reduced. Structural
route-to-market changes and an increase in the sales force numbers and trade
marketing capabilities are being implemented, with increased focus on extracting
operational efficiencies and improving service reliability. The speed and scale
of the initiatives being implemented including major changes to the
route-to-market has led to some market dislocation over the period and had a
minor impact on volumes. Investment in production capacity has progressed and
the new Valle brewery outside Cali will be commissioned by the end of the
calendar year, increasing capacity by 2.2 million hl. Further capital has been
invested in product quality, in distribution, and in upgrading bottles.

Our Peru operations have achieved lager volume growth of 10% despite
unseasonably cold weather and an earthquake in August which lowered volume
momentum towards the end of the period. There has been continuing strong price
discounting by competition especially with the entry of a low-priced brand from
a new competitor. Our flagship brand Cristal continues to show positive momentum
following its relaunch, but has been affected by the intense competition and our
overall market share fell to 88% in September, on a monthly basis, from 92% in
March 2007. The business continues to invest in marketing, brand renovation,
improving capability at the point of sale and capacity.

Trading at our Ecuador operation was difficult with the loss of six trading days
due to "dry" election days. Lager volumes grew by 4% with the flagship
mainstream brand Pilsener growing at 5% over very strong comparatives in the
prior period. Pilsener was relaunched in the latter part of September while
activities to improve visibility and availability continue. Our Club brand was
also relaunched and positioned in the premium segment.


In Panama our lager volumes grew by over 12% in a market that has grown by 10%.
Both our flagship brands Atlas and Balboa were successfully relaunched and prior
year above-inflation price increases have further boosted revenue. Minority
interests of 6.7% were acquired, increasing our effective interest to 95%.


Lager volumes in Honduras grew by 3%, aided by growth in the premium segment,
while soft drinks reported growth of 9%. In El Salvador our soft drink market
share has grown by nearly one percentage point to 47.7%. Lager volumes have
grown by nearly 4% off high growth in the prior period, driven by the premium
Golden Light brand, which continues to show double digit growth.


Our integration activities in the South America region are drawing to a close
with a final exceptional charge recorded in the period of US$52 million. This
includes a US$17 million net profit on the disposal of the juice business in
Colombia and soft drinks business in Costa Rica, which have been completed in
the period.



Europe

                                            Sept            Sept
                                            2007            2006
Financial summary                           US$m            US$m             %
---------------------------               -------         -------       -------

Revenue                                    2,876           2,279            26

EBITA                                        622             485            29

EBITA margin (%)                            21.6            21.3

Sales volumes (hl 000)
- Lager                                   25,715          23,041            12
---------------------------               -------         -------       -------


Europe achieved an excellent result with lager organic volumes up 12% and EBITA
growth of 29%. Volumes were assisted by warm weather in the earlier months, with
Poland, Russia and Romania all delivering strong double digit volume increases.
While volume growth moderated in the later months, most operations improved
market share over the half year. Reported EBITA growth of 29% was boosted by
currency translation gains and was 17% up on an organic constant currency basis.
There were significant increases in raw material costs, real wage increases and
the continued growth of can volumes in certain markets. The pricing environment
during the period under review has shown some signs of improvement.


In Poland, strong economic fundamentals as well as generally warmer weather
underpinned 8% growth in the beer market. Our domestic volumes were up 14% and
market share for the six month period improved. Tyskie, Poland's leading brand
with annual volumes of 5.7 million hectolitres and market share over 16%
continued its strong recovery and grew 11% while Zubr, the second biggest brand
in the market, was up 23% with upgraded brand imagery, new packaging and
increased media and trade presence. In the local premium segment, Lech was 12%
ahead with strong trade activation utilising associations with music and active
lifestyles. Our flavoured beer Redd's, with its three variants, is the fastest
growing brand in the premium segment. Expansion projects currently under way
will increase overall annual capacity to over 17 million hl by next summer.


Volumes in the Czech Republic were up 3%, slightly ahead of the market, and
market share improved slightly. Improved sales mix has been achieved reflecting
the continued focus on premium and mainstream brands. All brands have benefited
from a comprehensive packaging upgrade over the past 18 months including labels,
proprietary bottles, new crates, cans, multipacks and all secondary packaging.
Pilsner Urquell grew 5%, supported by a successful on-trade outlet expansion
programme focused on high visibility outlets, and tailored shopper activation in
hypermarkets. A new specialty beer, Master, introduced in draught in April has
been well accepted by the on-trade as a super premium to complement the existing
portfolio. Volumes of our largest brand, Gambrinus, were slightly down as we
deliberately withdrew from competitive rounds of discounting. Kozel continued
its strong momentum and was up by 21%. In order to address the sharp escalation
in the cost of brewing raw materials, price rises averaging 5.8% have been
announced.


In Russia volumes were up 18%, ahead of the beer market which grew by an
estimated 14%, reflecting the combined effects of warmer spring weather and
improving consumer spending. Real income growth is driving share gains for the
premium segment. Miller Genuine Draft was 21% ahead, driven by expanding
distribution of the new half litre bottle and Zolotaya Bochka, the fastest
growing local premium brand, was up 22% buoyed by focused marketing investment.
Redd's grew by 31% supported by strong brand communication targeted at female
consumers. New initiatives with distributors targeting smaller cities have
started to increase reach, with the sales force and cooler placements expanded
significantly to increase retail coverage in more than 120,000 outlets.
Construction of the new brewery at Ulyanovsk, 1,000 km east of Moscow, is on 
schedule to open early in 2009 with an initial capacity of 3 million hl and the 
ability to expand further as required.


In Italy, with generally warmer weather and a modestly improving economy, the
beer market grew by an estimated 1%. Against this, Birra Peroni has delivered
overall domestic volume growth of 2% as branded volumes gained 4% and private
label volumes were reduced by 24% with the continuation of the managed exit from
this segment. Focus on the on-trade, in the more affluent North, has led to
volume growth in this region of 7%. This performance has been achieved with
above-inflation price increases implemented early in the year. Our premium brand
Nastro Azzurro was up 8%, completing ten quarters of market share growth, and
premiumisation of the brand continues with selected prestige sponsorships and
the launch of limited edition packs. Peroni volumes were 6% higher than prior
year, with extensive activation of national football and rugby team
sponsorships, expansion of draught particularly in the Northern provinces, and
significant packaging renovation.


In Romania our volumes surged 37% with market share up 450 basis points to
24.9%, in a market up 12%, driven by a robust economy and growing consumer
spending. Now largely freed of the capacity constraints which applied during the
first half of last year, our portfolio is better matched to consumer demand
through mainstream and economy PET offerings supported by anchor distributors,
improved marketing and in trade execution. Our local premium brand Ursus Premium
grew by 15% and its on-premise share stands at 15%, while Timisoreana Lux was up
67% boosted by the new two litre PET pack, and is now the market leader with
annual sales of well over 2 million hl. These two brands are now the top two
brands in the important on-premise channel. Production capacity is being further
expanded to 6.3 million hl.


In Hungary the fiscal austerity measures continue to impact domestic
consumption, and there are no signs yet of an end to the intense price
discounting. Despite this, and the introduction of PET offerings by two
competitors, our volumes grew 4%, ahead of a declining market.


In the UK we continue to build on last year's success, with volumes up 42%
against an overall market where volumes have fallen. Peroni Nastro Azzurro grew
33% with new packs, a successful national advertising campaign, and a
significant increase in draught installations. Our Polish brands, Tyskie and
Lech, introduced last year, have been successfully integrated into the portfolio
and are performing very strongly.


North America

                                                   Sept         Sept
                                                   2007         2006
Financial summary                                  US$m         US$m         %
---------------------------                       -------      -------   -------

Revenue                                           2,782        2,632         6

EBITA*                                              300          253        19

EBITA margin (%)                                   10.8          9.6

Sales volumes (hl 000)
- Lager - excluding contract brewing             26,191       24,693         6
        - contract brewing                        4,065        5,224       (22)
- Soft drinks                                        54           49        10

Lager - domestic sales to retailers (STRs)       24,556       23,177         6

---------------------------                       -------      -------   -------

* In 2007 including an amount of US$16m from a settlement with Ball Metal
Beverage Container Corporation in respect of can purchases in the prior year
(2006: nil).



Miller Brewing Company drove improved results in the period through disciplined
execution of its strategy to migrate the brand portfolio to higher margin,
higher growth segments, while aggressively controlling costs to continue
investments in brand marketing and product innovation.


Solid volume and pricing performance for the flagship Miller Lite brand, strong
overall portfolio pricing and mix gains, with improved volume performance from
higher margin brands, combined to produce a 3.9% increase in domestic net
revenue per barrel.


During the period, US beer industry shipments to wholesalers (STWs) grew by
1.6%. Excluding imports, the US industry grew by 1.0%. Miller's US domestic
sales to retailers (STRs) increased by 5.9% over the six months and 1.4% on an
organic basis, while reported domestic STWs increased by 6.7%. Contract brewing
volumes were lower by 22%, due primarily to Miller's acquisition of the Sparks
and Steel Reserve brands last year which were previously brewed under contract,
and were down only 5% on an organic basis.


Miller Lite returned to solid growth in the period, posting a 2.1% increase in
STRs supported by a strong marketing campaign focused on product intrinsic
values. Miller Lite was up 3.3% in the on-premise channel and average case
pricing was up 2.1% across all channels, 50 basis points more than its largest
domestic light beer competitor.


After just six weeks of market testing, Miller decided in April to fast track a
national launch of Miller Chill, its new chelada-style light beer. The brand
reached 74% off-premise and 30% on-premise distribution by 1 August 2007 with
strong consumer trial and repeat purchase fuelling its success. Miller Chill
provided significant incremental volume and margin enhancement as it reached a
0.8% value share during the peak summer sales season. While the brand is
demonstrating expected seasonality, as at the end of October 2007 it had
achieved STRs of 380,000 barrels, and it is well on its way to exceeding the
first year retail volume target of 400,000 barrels.


Miller's worthmore brand portfolio grew volumes in the high-single digits. This
strong performance was driven by 27% growth of the Leinenkugel's franchise,
following the continued rollout of the Sunset Wheat variant, which is now
available in 42 states, as well as the regional launch of Summer Shandy. Peroni
Nastro Azzurro grew by 54% in the US using its global Italian style positioning.
Sparks volume grew by 10.8% on a proforma basis during its first full year in
the Miller system.


Miller High Life also returned to growth, with STRs up 1.0% on the back of a
strong national marketing campaign focused on common sense values and average
case prices were up 2.9% in supermarkets nationally. The Milwaukee's Best
franchise STRs declined 4.0% in the face of strong competitive pressure in the
economy segment. The declining trend for Miller Genuine Draft STRs continued
with volumes down 9.3%, in line with its market segment. Icehouse STRs were up
2.0%, a significant trend improvement following new brand positioning.


Total revenue increased by 5.8% versus the prior period, while US domestic
revenue excluding contract brewing increased by 10%. Brewing materials costs
were up compared to the prior year as grain, barley and other ingredient costs
increased.


EBITA for the period was 19% higher than the prior year, driven primarily by
price increases and higher volumes, and includes a retrospective cost
adjustment. In October 2007 Miller settled a dispute with the Ball Metal
Beverage Container Corporation, which will result in a one-time payment to
Miller of some $70 million, a portion of which is attributable to our contract
brewing partners. An amount of US$16 million relates to materials supplied to
Miller during the prior financial year and this benefit has been included in the
period under review. The settlement also includes a one-off gain of US$17
million which will be reported in the second half in respect of other
contractual changes. The balance attributable to Miller is being recognised as
normal costs of goods sold, across both halves of the current year.


Miller's EBITA margin increased to 10.8% from 9.6%, as unit revenue
improvements, favourable mix and the effect of the Ball settlement exceeded
increases in marketing and other costs. Marketing investment will remain at a
high level in the second half as we invest behind brand momentum and
innovations.



Africa & Asia

                                                   Sept         Sept
                                                   2007         2006
Financial summary                                  US$m         US$m         %
---------------------------                       -------      -------   -------

Group revenue (including share of associates)     1,703        1,356        26

EBITA                                               277          240        16

EBITA margin (%)                                   16.3         17.7

Sales volumes (hl 000)*
- Lager                                          52,830       40,854        29
- Lager organic                                  49,406       40,854        21
- Soft drinks                                     4,193        6,914       (40)
- Soft drinks - organic                           4,193        3,438        22
- Other alcoholic beverages                       2,966        3,126        (5)
---------------------------                       -------      -------   -------

* Excludes Castel lager volumes of 8,441 hl 000 (2006: 7,563 hl 000) and soft
drinks of 7,256 hl 000 (2006: 6,659 hl 000). 
Soft drinks volumes include sparkling and non-sparkling beverages.


The strong growth in Africa & Asia continued in the period under review, with
lager volume growth of 29% (representing organic growth of 21%) and reported
EBITA growth of 16%, despite currency weakness in certain of our countries.
EBITA margin reduced from 17.7% to 16.3% as a result of the higher growth in
lower margin Asia markets and a slight reduction in Africa margins due to rising
costs.


Africa


Momentum within Africa continued in the first half with organic lager growth of
6% and total organic volume growth of 7%, both excluding Zimbabwe. Underlying
this performance is continued economic growth in most countries, improved
execution in both sales and distribution and ongoing brand renovations.


Tanzania achieved lager volume growth of 8% in the six months. Performance was
driven by an improving economy, improved distribution and market place
activities including the re-formulation of the premium Ndovu Lager to 100% malt,
the introduction of new long neck bottle for Kilimanjaro and the launch of Eagle
lager in the North East aimed at capturing share at the subsistence end of the
market. The launch of Eagle will be rolled out on a national basis later in the
year.


Mozambique continued its excellent performance by posting lager growth of 8%,
its fourth consecutive first half year period of similar growth. The performance
was underpinned by continued economic development, a stable currency and a well
balanced brand and pack portfolio that provides the consumer with multiple brand
and pack options at differing price points. A new brewhouse was commissioned
late in the prior year and a number of capacity projects have delivered improved
operating efficiencies.


Angola continues to grow rapidly with a buoyant economy and our soft drink
business continues its strong growth, recording 12% volume growth despite supply
side constraints. Profitability was impeded by the ending of an import tax
holiday and higher can volumes which carry lower margins. Results for this year
include our share of earnings from the recently privatised Empresa de Cervejas
N'gola, our brewery in Southern Angola, which is performing ahead of expectation
and is currently undergoing a capacity expansion.


Botswana has returned to growth in both lager and soft drinks operations. The
economic pressure and inflationary impacts that followed the 2005 devaluations
have largely been absorbed and are no longer impacting performance. Lager
volumes are up 11% and soft drinks up 19%. We have completed the brand
renovation of the market leading lager, St. Louis, and have recently launched a
new returnable lager bottle aimed at reducing the cost per serving to the
consumer.


Castel performed well with robust economic conditions in the countries in which
they operate underpinning 10% total volume growth, and strong growth was
recorded in its key markets of Cameroon, Ethiopia and Angola.


Asia


China continued its strong performance with underlying organic volume growth of
22%, ahead of industry growth. All regions posted growth over the prior period,
with the North East and Central regions out-performing the others despite
increased competitor activity. The Snow brand extended its position as China's
number one brand by volume with a 9% overall market share and it now represents
over 70% of the brand portfolio.


Input cost increases were evident and, while prices were increased in some
regions, this led to overall margin pressure during the period. In addition the
ongoing integration of new acquisitions and greenfield commissioning costs
further added to overall margin pressures.


The business disposed of its non core Southern region water business in May
2007, thus creating a focused lager beer business.


India once again grew strongly in the first six months posting lager volume
growth of 28%, (up 20% on an organic basis) with industry growth of 16%. Ongoing
capacity expansion, the development of a well balanced brand portfolio and the
integration of last year's Foster's India acquisition represent key areas of
progress over the period, with volumes of the Fosters' brand up 47% on a
proforma basis.



South Africa: Beverages

                                                    Sept          Sept
                                                    2007          2006
Financial summary                                   US$m          US$m       %
---------------------------                        -------       -------  ------

Group revenue (including share of associates)      2,016         1,950       4

EBITA                                                405           411      (2)

EBITA margin (%)                                    20.1          21.1

Sales volumes (hl 000)
- Lager                                           12,478        12,237       2
- Soft drinks                                      7,253         6,506      11

---------------------------                        -------      -------   ------

The South African economy continued its growth trend in the first six months of
the financial year, recording GDP growth of 5%. Consumer demand remained strong
and the suspension of the National Lottery was a favourable factor.


Lager volumes grew by 2% in the first half of the year. Total soft drink volumes
were up 11% as the soft drink business benefited from the positive economic
environment and some trade restocking in earlier months following carbon dioxide
shortages at the end of the prior year.


Our mainstream lager volumes grew by 5% and flavoured alcoholic beverages (FABs)
achieved strong growth. The expected loss in premium volumes was softened by the
strong growth in Castle Lite (up 74%) and the successful launch of a new premium
offering, Hansa Marzen Gold, in May 2007, which represents some 3% of volumes
for the half year, and the launch of Peroni Nastro Azzurro in draught format.
Volume growth was impacted by supply and production constraints experienced at
the end of the second quarter, compounded by reduced production flexibility
during new brand and pack introductions, including the implementation of our
mainstream renovation programme.


Price increases in January 2007 in lager and soft drinks, which were below
inflation, together with organic volume growth increased revenue by 8% in
constant currency. Revenue growth reflects negative sales mix in lager and the
faster growth of soft drinks.


Margins were adversely affected by higher raw material and packaging input
costs, driven by rising dollar commodity prices, exacerbated by a weaker rand
during the period, compared to the prior year. Input costs for the full year are
expected to show further increases as higher priced glass imports impact
packaging costs.


Distribution costs were higher as our direct delivery customer base increased in
line with our main market penetration initiative.  Outlets serviced increased by
7% in the first half of this year to over 21,500. Despite significant progress
being made earlier in the year in licensing outlets, administrative delays at
local government level have slowed progress. Distribution costs also rose from
coastal breweries having to partially supply inland sales areas with
non-returnable packs.


Marketing investments were made in brand and pack renovations and new product
development. Castle received a packaging upgrade across all packs as did Hansa
Pilsner, which was renovated to match the contemporary Hansa Marzen Gold
packaging.  Extensive new product development work undertaken in the first half
of the year will deliver further innovations in the market over the next twelve
months. The phased replacement of the 750ml returnable mainstream bottle
commenced in April 2007, and to date, three of our seven breweries are producing
mainstream brands in the new bottle and our consumers' response has been
positive.


Constant currency EBITA growth of 3% reflects the impact of higher raw material
and distribution costs as well as the investment in market facing initiatives.
EBITA margins are 100 basis points lower at 20.1%, also reflecting the change in
sales mix with lower premium lager volumes and higher mainstream lager volumes
in the period.


During the first six months the negative impact of the termination of the Amstel
brand on SA Beverages earnings has been mitigated by the unavailability of the
product in the market in the first quarter as well as the successful launch of
our new premium brand, Hansa Marzen Gold. Consequently, we have revised our
estimate of the impact on current year EBITA from US$80 million to between
US$40m and US$50m, which will impact EBITA and margin mainly in the second half
as the brand has recently returned to the market in bottle form.


Sales of Appletiser continued to show strong volume growth, up 25%, with double
digit growth recorded in South Africa and internationally. Distell has grown in
both its domestic and international markets, primarily in the cider, ready to
drink and spirits categories. Profitability has also been improved by operating
efficiencies.


South Africa: Hotels and Gaming

                                                    Sept         Sept
                                                    2007         2006
Financial summary                                   US$m         US$m        %
---------------------------                        -------      -------  -------

Group revenue (share of associates)                  193          167       16

EBITA                                                 58           44       32

EBITA margin (%)                                    30.1         26.6

Revenue per available room (Revpar) - US$          68.29        58.46       17

---------------------------                        -------      -------  -------

The group is a 49% shareholder in the Tsogo Sun group, which reported a good
first half year result with an increase of 32% in EBITA over the prior period.
The South African economy continued to grow with consumer spending and demand
for hotel accommodation remaining high. The gaming division enjoyed robust
growth during the period with new gaming capacity and market growth influencing
results. Good occupancy levels continue to be achieved, with strong growth in
room rate improving revpar by 17% over the prior period.


Financial review


Accounting policies

The accounting policies followed are the same as those published within the
Annual Report and Accounts for the year ended 31 March 2007. The Annual report
and accounts for the year ended 31 March 2007 are available on the company's
website, www.sabmiller.com.


Segmental analysis

The group's operating results on a segmental basis are set out in the segmental
analysis of operations, and the disclosures are in accordance with the basis on
which the businesses are managed and according to the differing risk and reward
profiles. SABMiller believes that the reported profit measures - before
exceptional items and amortisation of intangible assets (excluding software),
and including associates on a similar basis (i.e. before interest, tax and
minority interests) - provide additional information on trends and allow for
greater comparability between segments. Segmental performance is reported after
the specific apportionment of attributable head office service costs.


Accounting for volumes

In the determination and disclosure of reported sales volumes, the group
aggregates 100% of the volumes of all consolidated subsidiaries and its equity
accounted associates, other than associates where the group exercises
significant influence but primary responsibility for day to day management rests
with others (such as Castel and Distell). In these latter cases, the financial
results of operations are equity accounted in terms of IFRS but volumes are
excluded. Contract brewing volumes are excluded from total volumes; however
revenue from contract brewing is included within revenue. Reported volumes
exclude intra-group sales volumes.


Organic, constant currency comparisons

The group discloses certain results on an organic, constant currency basis, to
show the effects of acquisitions net of disposals and changes in exchange rates
on the group's results. Organic results exclude the first twelve months' results
of acquisitions and the last twelve months' results of disposals. Constant
currency results have been determined by translating the local currency
denominated results for the period ended 30 September 2007 at the exchange rates
for the comparable period in the prior period.


Acquisitions and disposals

On 3 August, the group announced the acquisition of 99.96% of Browar Belgia Sp
zoo, the fourth largest brewer in Poland. The transaction is subject to approval
from the Office of Competition and Consumer Protection, which is expected during
December 2007.


On 9 October, SABMiller plc and Molson Coors Brewing Company announced that they
have signed a letter of intent to combine the US and Puerto Rico operations of
their respective subsidiaries, Miller and Coors, in a joint venture to create a
stronger, brand-led US brewer with the scale, resources and distribution
platform to compete more effectively in the increasingly competitive US
marketplace. The transaction is subject to negotiation of definitive agreements,
which is expected by the end of 2007. Closing of the transaction is also subject
to obtaining clearances from the US competition authorities and certain other
regulatory clearances and third-party consents, as required, and is not expected
before mid 2008.


During the period the group completed the disposals of its soft drinks business
in Costa Rica and the juice business in Colombia which were announced in the
prior year. Our associate in China also completed the disposal of a non-core
water business.


Exceptional items

Items that are material either by size or incidence are classified as
exceptional items. Further details on the treatment of these items can be found
in note 3. Net exceptional charges of US$52 million have been recorded (2006:
US$27 million) during the period. These relate to final restructuring costs of
US$69 million (2006: US$27 million) incurred in Latin America, partially offset
by a net profit of US$17 million on disposal of soft drink businesses in Costa
Rica and Colombia.


Borrowings and net debt

Gross debt, comprising borrowings of the group together with the fair value of
derivative assets or liabilities held to manage interest rate and foreign
currency risk of borrowings, has increased to US$7,555 million from US$7,358
million at 31 March 2007.  Net debt comprising gross debt net of cash and cash
equivalents has increased to US$7,054 million from US$6,877 million at 31 March
2007. An analysis of net debt is provided in note 8. The group's gearing
(presented as a ratio of debt/equity) has decreased to 43.5% from 45.8% at 31
March 2007. On 16 July 2007, the group's holding company for its South African
operations raised R1,600 million (approximately US$230 million) in 5-year notes.
The notes, issued under a R4,000 million Domestic Medium Term Note Programme,
are guaranteed by SABMiller plc and are listed on BESA, the South African Bond
Exchange. The net proceeds of the bond issue have been used to repay part of
existing loan facilities that were utilised by The South African Breweries Ltd.


The average borrowing rate for the total debt portfolio at 30 September 2007 was
7.9% (2006: 6.9%), compared to 7.6% at 31 March 2007.


Finance costs

Net finance costs increased to US$258 million (2006: US$242 million), reflecting
the change in the composition in net debt with more non US dollar related debt,
funding of the acquisition of minority interests in the second half of the prior
year and the increased interest rates noted above.


Profit before tax

Profit before tax of US$1,579 million was up 14% on prior year, reflecting
performance improvements across the businesses, despite higher exceptional items
(as described above).


Taxation

Our effective tax rate, 33.5%, is lower than the prior year period under review
(35.7%), and also lower than the prior year full year rate (34.5%). This
reflects a more favourable geographic mix of profits across the group, local
statutory rate reductions and ongoing management of our effective tax rate.


Earnings per share

The group presents adjusted basic earnings per share to exclude the impact of
the amortisation of intangible assets (excluding software) and other
non-recurring items, which include post-tax exceptional items, in order to
present a more meaningful comparison for the years shown in the consolidated
financial statements. Adjusted basic earnings per share of 69.1 US cents were up
by 22% on the prior period, reflecting the improved performance noted above. An
analysis of earnings per share is shown in note 5 to the financial statements.


Cash flow

Net cash generated from operating activities before working capital movements
(EBITDA) increased by 13%, to US$2,229 million, compared to the prior period.
The ratio of EBITDA to revenue decreased slightly in the period to 20.7% (2007:
21.0%).


Risks and uncertainties

The principal risks and uncertainties for the first six months and remaining six
months of the financial year remain as reflected on page 9 of the 2007 Annual
Report. In addition there is a risk relating to the proposed joint venture
transaction concerning Miller and Coors in the US and Puerto Rico. The
transaction is subject to the receipt of consents and approvals from government
entities that could delay or prevent completion of the transaction or impose
conditions on the joint venture, which could result in an adverse effect on the
business or financial condition of the joint venture or on Miller if the
transaction does not proceed to completion, as well as on our business and
financial results.


Currencies: South African rand/Colombian peso

During the period, the rand strengthened by 5% against the US dollar and ended
at R6.89 to the US dollar compared to R7.29 at 31 March 2007, whilst the
weighted average rand/dollar rate weakened by 5% to R7.12 compared with R6.81 in
the prior period. The peso has strengthened by 8% against the US dollar ending
the period at COP2,023 to the US dollar, compared to COP2,190 at 31 March 2007
and the weighted average COP/dollar rate strengthened by 17% to COP2,030
compared with COP2,437 in the prior period.


Dividend

The board has declared a cash interim dividend of 16 US cents per share. The 
dividend will be payable on 21 December 2007 to shareholders registered on the 
London and Johannesburg registers on 30 November 2007. The ex-dividend trading 
dates will be 28 November 2007 on the London Stock Exchange and 26 November 2007
on the JSE Limited. As the group reports in US dollars, dividends are declared 
in US dollars. They are payable in South African rand to shareholders on the 
Johannesburg register, in US dollars to shareholders on the London register with

a registered address in the United States (unless mandated otherwise), and in 
sterling to all remaining shareholders on the London register. Further details 
relating to dividends are provided in note 6.

The rate of exchange applicable for US dollar conversion into both South African

rand and sterling was determined yesterday. The rate of exchange determined for 
converting to South African rand was US$:ZAR = 6.6412 resulting in an equivalent

interim dividend of 106.2592 SA cents per share. The rate of exchange for 
converting to sterling was GBP:US$ = 2.0752 resulting in an equivalent interim 
dividend of 7.7101 UK pence per share.

From the commencement of trade on 15 November 2007 until the close of business
on 30 November 2007, no transfers between the London and Johannesburg registers
will be permitted, and from the close of business on 23 November 2007 until the
close of business on 30 November 2007, no shares may be dematerialised or
rematerialised.


DIRECTORS' RESPONSIBILITY FOR FINANCIAL REPORTING


This statement, which should be read in conjunction with the independent review
report of the auditors set out below, is made to enable shareholders to
distinguish the respective responsibilities of the directors and the auditors in
relation to the consolidated interim financial information, set out on pages 18
to 33, which the directors confirm has been prepared on a going concern basis.
The directors consider that the group has used appropriate accounting policies,
consistently applied and supported by reasonable and appropriate judgements and
estimates.


A copy of the interim report of the group is placed on the company's website.
The directors are responsible for the maintenance and integrity of information
on the company's website. Information published on the internet is accessible in
many countries with different legal requirements. Legislation in the United
Kingdom governing the preparation and dissemination of the financial statements
may differ from legislation in other jurisdictions.


The directors confirm that this condensed set of financial statements has been
prepared in accordance with IAS 34 as adopted by the European Union, and the
interim report herein includes a fair review of the information required by DTR
4.2.7 and DTR 4.2.8.

The directors of SABMiller plc are listed in the SABMiller plc Annual Report for
the year ended 31 March 2007. Ms Nancy De Lisi retired from office on 30 April
2007 and Mr Dinyar Devitre, nominated by Altria Group, Inc. to replace Ms De
Lisi was appointed to the board on 16 May 2007. A list of current directors is
maintained on the SABMiller plc website: www.sabmiller.com.





On behalf of the board

E A G Mackay                     M I Wyman
Chief executive                  Chief financial officer


15 November 2007




INDEPENDENT REVIEW REPORT OF HALF-YEARLY CONSOLIDATED FINANCIAL INFORMATION TO
SABMILLER plc



Introduction

We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
September 2007, which comprises the summarised income statement, summarised
balance sheet, statement of recognised income and expense, cash flow statement
and related notes. We have read the other information contained in the
half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the condensed
set of financial statements.


Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.


As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, "Interim Financial Reporting", as adopted by the European Union.


Our responsibility

Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review. This report, including the conclusion, has been prepared for and only
for the company for the purpose of the Disclosure and Transparency Rules of the
Financial Services Authority and for no other purpose. We do not, in producing
this report, accept or assume responsibility for any other purpose or to any
other person to whom this report is shown or into whose hands it may come save
where expressly agreed by our prior consent in writing.


Scope of review

We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.


Conclusion

Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 September 2007 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.


PricewaterhouseCoopers LLP                     London
Chartered Accountants                          15 November 2007



SABMiller plc
CONSOLIDATED INCOME STATEMENTS
for the six months ended 30 September


 ----------------------------  -----      ---------       --------      
--------
                                         Six months     Six months    Year ended
                                      ended 30/9/07  ended 30/9/06       31/3/07
                                          Unaudited      Unaudited       Audited
                              Notes          US$m           US$m           US$m
 ---------------------------- -----       ---------       --------      
--------

Revenue                          2         10,781          9,344         18,620

Net operating expenses                     (9,091)        (7,829)       (15,593)
                                          ---------       --------       --------

Operating profit                 2          1,690          1,515          3,027
                                          ---------       --------       --------
Operating profit before
exceptional items                           1,742          1,542          3,120
Exceptional items                3            (52)           (27)           (93)
                                          ---------       --------       --------

Net finance costs                            (258)          (242)          (428)
                                          ---------       --------       --------
Interest payable and
similar charges                              (354)          (388)          (668)
Interest receivable                            96            146            240
                                          ---------       --------       --------

Share of post-tax results
of associates                                 147            105            205
                                          ---------       --------       --------

Profit before taxation                      1,579          1,378          2,804
Taxation                         4           (497)          (470)          (921)
                                          ---------       --------       --------

Profit for the financial
period                                      1,082            908          1,883
                                          ---------       --------       --------

Profit attributable to
minority interests                            124            118            234
Profit attributable to
equity shareholders                           958            790          1,649
                                          ---------       --------       --------
                                            1,082            908          1,883
                                          ---------       --------       --------

Basic earnings per share
(US cents)                       5           63.9           52.9          110.2
Diluted earnings per share
(US cents)                       5           63.5           52.6          109.5
                                          ---------       --------       --------


All operations are continuing.




SABMiller plc
CONSOLIDATED BALANCE SHEETS
at 30 September


             ---------------------------  ------  ---------   --------  --------
                                                    30/9/07    30/9/06   31/3/07
                                                  Unaudited  Unaudited   Audited
                                          Notes      US$m       US$m      US$m
             --------------------------- ------   ---------   --------  --------
Assets
Non-current assets
Goodwill                                           13,783     12,678    13,250
Intangible assets                                   4,062      3,741     3,901
Property, plant and equipment                7      7,433      6,169     6,750
Investments in associates                           1,524      1,049     1,351
Available for sale investments                         50         42        52
Derivative financial instruments                       37         72        34
Trade and other receivables                           190         95       181
Deferred tax assets                                   142        359       164
                                                  ---------   --------  --------
                                                   27,221     24,205    25,683
Current assets
Inventories                                         1,048        801       928
Trade and other receivables                         1,822      1,304     1,471
Current tax assets                                    105         52       103
Derivative financial instruments                        3         66         6
Loan participation deposit                              -        190         -
Cash and cash equivalents                    8        501        657       481
                                                  ---------   --------  --------
                                                    3,479      3,070     2,989
Assets in disposal groups held for sale                 -          -        64
                                                  ---------   --------  --------
                                                    3,479      3,070     3,053
                                                  ---------   --------  --------
Total assets                                       30,700     27,275    28,736
                                                  ---------   --------  --------

Liabilities
Current liabilities
Derivative financial instruments                      (21)        (4)       (5)
Borrowings                                   8     (1,227)    (1,157)   (1,711)
Trade and other payables                           (3,012)    (2,493)   (2,746)
Current tax liabilities                              (513)      (354)     (429)
Provisions                                           (282)      (205)     (266)
                                                  ---------   --------  --------
                                                   (5,055)    (4,213)   (5,157)
Liabilities directly associated with
disposal groups held for sale                           -          -       (19)
                                                  ---------   --------  --------
                                                   (5,055)    (4,213)   (5,176)
                                                  ---------   --------  --------
Non-current liabilities
Derivative financial instruments                     (310)      (136)     (204)
Borrowings                                   8     (6,174)    (6,326)   (5,520)
Trade and other payables                             (312)       (61)     (269)
Deferred tax liabilities                           (1,440)    (1,537)   (1,393)
Provisions                                         (1,190)    (1,265)   (1,173)
                                                  ---------   --------  --------
                                                   (9,426)    (9,325)   (8,559)
                                                  ---------   --------  --------
Total liabilities                                 (14,481)   (13,538)  (13,735)
                                                  ---------   --------  --------
Net assets                                         16,219     13,737    15,001
                                                  ---------   --------  --------

Equity
Share capital                                9        158        158       158
Share premium                               10      6,162      6,123     6,137
Merger relief reserve                       10      3,395      3,395     3,395
Other reserves                              10      1,177        (78)      466
Retained earnings                           10      4,688      3,593     4,250
                                                  ---------   --------  --------
Total shareholders' equity                         15,580     13,191    14,406
Minority interests                          10        639        546       595
                                                  ---------   --------  --------
Total equity                                       16,219     13,737    15,001
                                                  ---------   --------  --------



SABMiller plc
CONSOLIDATED CASH FLOW STATEMENTS
for the six months ended 30 September




  -------------------------- -----       ---------       --------       --------
                                        Six months     Six months     Year ended
                                     ended 30/9/07  ended 30/9/06        31/3/07
                                         Unaudited      Unaudited        Audited
                             Notes          US$m           US$m           US$m
  -------------------------- -----       ---------       --------       --------

Cash flows from operating
activities
Cash generated from
operations                     11          2,128          2,152          4,018
Interest received                            104             94            231
Interest paid                               (378)          (347)          (719)
Interest element of finance
lease payments                                 -             (1)             -
Tax paid                                    (447)          (371)          (801)
                                         ---------       --------       --------
Net cash from operating
activities                                 1,407          1,527          2,729
                                         ---------       --------       --------

Cash flows from investing
activities
Purchase of property, plant
and equipment                               (850)          (462)        (1,191)
Proceeds from sale of
property, plant and
equipment                                     42             25            110
Purchase of intangible
assets                                       (34)          (240)          (270)
Purchase of investments                       (5)             -             (3)
Proceeds from sale of
investments                                    -              1              1
Proceeds from sale of
associates                                     -              -             81
Proceeds on disposal of
share in subsidiaries                         71              -              7
Acquisition of subsidiaries
(net of cash acquired)                         -           (145)          (131)
Purchase of shares from
minorities                                    (2)           (34)          (200)
Purchase of shares in
associates                                   (29)            (8)          (186)
Dividends received from
associates                                    47             73            102
Dividends received from
other investments                              -              1              1
                                         ---------       --------       --------
Net cash used in investing
activities                                  (760)          (789)        (1,679)
                                         ---------       --------       --------

Cash flows from financing
activities
Proceeds from the issue of
shares                                        25             24             38
Purchase of own shares for
share trusts                                  (9)            (8)           (30)
Proceeds from borrowings                   2,679          3,710          5,126
Repayment of borrowings                   (2,725)        (3,702)        (5,663)
Capital element of finance
lease payments                                (2)            (9)            (7)
Decrease in loan
participation deposit                          -              -            200
Net cash receipts on net
investment hedges                              2              -             42
Dividends paid to
shareholders of the parent                  (537)          (473)          (681)
Dividends paid to minority
interests                                    (87)           (68)          (161)
                                         ---------       --------       --------
Net cash used in financing
activities                                  (654)          (526)        (1,136)
                                         ---------       --------       --------

Net cash from operating,
investing and financing
activities                                    (7)           212            (86)
Effects of exchange rate
changes                                      (18)            26            (18)
                                         ---------       --------       --------
Net (decrease) / increase
in cash and cash
equivalents                                  (25)           238           (104)

Cash and cash equivalents
at 1 April                                   294            398            398
                                         ---------       --------       --------
Cash and cash equivalents
at period end                   8            269            636            294
                                         ---------       --------       --------




SABMiller plc
CONSOLIDATED STATEMENTS OF RECOGNISED INCOME AND EXPENSES
for the six months ended 30 September


 -----------------------------       ---------        --------        --------
                                    Six months      Six months      Year ended
                                 ended 30/9/07   ended 30/9/06         31/3/07
                                     Unaudited       Unaudited         Audited
                                        US$m            US$m            US$m
 -----------------------------       ---------        --------        --------

Currency translation
differences on foreign
currency net investments                 812            (302)            362
Actuarial gains/(loss) on
defined benefit plans                      -               -              (5)
Fair value moves on available
for sale investments                       -               -               7
Tax on items taken directly to
equity                                     -               -               2
Net investment hedges                    (90)            106              (2)
                                     ---------        --------        --------
Net profits/(losses)
recognised directly in equity            722            (196)            364

Profit for the period                  1,082             908           1,883
                                     ---------        --------        --------

Total recognised income for
the period                             1,804             712           2,247
                                     ---------        --------        --------
- attributable to equity
  shareholders                         1,662             606           2,010
- attributable to minority
  interests                              142             106             237
                                     ---------        --------        --------




SABMiller plc
NOTES TO THE FINANCIAL STATEMENTS


1. Basis of preparation


The financial information comprises the unaudited results of SABMiller plc for
the six months ended 30 September 2007 and 30 September 2006, together with the
audited results for the year ended 31 March 2007. The financial information in
this report is not audited and does not constitute statutory accounts within the
meaning of s240 of the Companies Act 1985 (as amended). The board of directors
approved this financial information on 15 November 2007. The annual financial
statements for the year ended 31 March 2007, which represent the statutory
accounts for that year have been filed with the Registrar of Companies. The
auditors' report on those accounts was unqualified and did not contain a
statement made under s237(2) or (3) of the Companies Act 1985.


The unaudited financial information in this interim announcement has been
prepared in accordance with the Disclosure and Transparency Rules of the
Financial Services Authority, and with IAS 34 'Interim Financial Reporting' as
adopted by the European Union. The interim financial information should be read
in conjunction with the annual financial statements for the year ended 31 March
2007, which have been prepared in accordance with IFRSs as adopted by the
European Union.


The subsidiary and associated undertakings in the group operate in the local
currency of the country in which they are based. From a presentational
perspective, the group regards these operations as being US dollar-based as the
transactions of these entities are, insofar as is possible, evaluated in US
dollars. In management accounting terms all companies report in US dollars. The
directors of the company regard the US dollar as the presentational currency of
the group, being the most representative currency of its operations. Therefore
the consolidated interim financial statements are presented in US dollars.


Accounting policies

The accounting policies adopted are consistent with those of the annual
financial statements for the year ended 31 March 2007, which were published in
June 2007, as described in those financial statements. The financial statements
are prepared under the historical cost convention, except for the revaluation to
fair value of certain financial assets and liabilities, share based payments,
and pension assets and liabilities.


The following new standards, amendments to standards or interpretations are
mandatory for the first time for the financial year ending 31 March 2008.

-    IFRS 7 Financial Instruments: Disclosures, IAS 1 Amendments to Capital
     Disclosures, and IFRS 4 Insurance Contracts revised implementation 
     guidance. As this interim report contains only condensed financial 
     statements, and as there are no material financial instrument related 
     transactions in the period, full IFRS 7 disclosures are not required at 
     this stage. The full IFRS 7 disclosures, including the sensitivity analysis
     to market risk and capital disclosures required by the amendment of IAS 1, 
     will be given in the annual financial statements.

-    IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting
     in Hyperinflationary Economies. This interpretation is not relevant for the
     group.

-    IFRIC 8 Scope of IFRS 2. This interpretation has not had any impact on the
     recognition of share-based payments in the group.

-    IFRIC 9 Reassessment of Embedded Derivatives. This interpretation has not
     had any impact on the group.

-    IFRIC 10 Interim Financial Reporting and Impairment. This interpretation
     has not had any impact on the group.


2. Segmental information (unaudited)


Revenue

The following table provides a reconciliation of group revenue (including share
of associates' revenue) to segment revenue.
                              
                            Share of                          Share of
                  Segment  associates'     Group    Segment  associates'      Group
                  revenue      revenue   revenue    revenue      revenue    revenue
Six months         2007         2007      2007       2006         2006       2006
ended 30           US$m         US$m      US$m       US$m         US$m       US$m
September:                     
----------------  -------     --------  --------  ---------    --------- 
---------
Latin America     2,453            -     2,453      2,003            9      2,012
Europe            2,876            -     2,876      2,279            -      2,279
North America     2,782            -     2,782      2,632            -      2,632
Africa and Asia     869          834     1,703        681          675      1,356
South Africa:
                 -------     --------  --------  ---------    ---------  ---------
- Beverages       1,801          215     2,016      1,749          201      1,950
- Hotels and
Gaming                -          193       193          -          167        167
                  -------     --------  --------  ---------    ---------  ---------
South Africa:
Total             1,801          408     2,209      1,749          368      2,117
                  -------     --------  --------  ---------    ---------  ---------
                 10,781        1,242    12,023      9,344        1,052     10,396
                  -------     --------  --------  ---------    ---------  ---------

Year ended 31
March:                                               2007         2007       2007
                                                     US$m         US$m       US$m
                                                  ---------    ---------  ---------

Latin America                                       4,373           19      4,392
Europe                                              4,078            -      4,078
North America                                       4,887            -      4,887
Africa and Asia                                     1,455        1,219      2,674
South Africa:
                                                  ---------    ---------  ---------
- Beverages                                         3,827          447      4,274
- Hotels and
Gaming                                                  -          340        340
                                                  ---------    ---------  ---------
South Africa:
Total                                               3,827          787      4,614
                                                  ---------    ---------  ---------
                                                   18,620        2,025     20,645
                                                  ---------    ---------  ---------


Operating profit

The following table provides a reconciliation of operating profit (segment
result) to operating profit before exceptional items.

                                              Operating                              Operating
                                          profit before                          profit before
                  Operating  Exceptional    exceptional  Operating  Exceptional    exceptional
                     profit        items          items     profit        items          items
Six months             2007         2007           2007       2006         2006           2006
ended 30               US$m         US$m           US$m       US$m         US$m           US$m
September:                              
----------------    -------     --------       --------  ---------    --------- 
    ---------
Latin America         328           52            380        311           24            335
Europe                620            -            620        484            -            484
North America         293            -            293        251            -            251
Africa and Asia       133            -            133        124            -            124
South Africa:
Beverages             380            -            380        387            -            387
Corporate             (64)           -            (64)       (42)           3            (39)
                    -------     --------       --------  ---------    ---------      ---------
                    1,690           52          1,742      1,515           27          1,542
                    -------     --------       --------  ---------    ---------      ---------

Year ended 31
March:                                                      2007         2007           2007
                                                            US$m         US$m           US$m
                                                         ---------    ---------      ---------

Latin America                                                746           64            810
Europe                                                       706           24            730
North America                                                366            -            366
Africa and Asia                                              272            -            272
South Africa:
Beverages                                                  1,043            -          1,043
Corporate                                                   (106)           5           (101)
                                                         ---------    ---------      ---------
                                                           3,027           93          3,120
                                                         ---------    ---------      ---------



EBITA

The following table provides a reconciliation of operating profit before
exceptional items to EBITA.

Six months                   Share of     Amortisation                             Share of      Amortisation    
ended 30       Operating    associates'   of intangible            Operating       associates'   of intangible
September:       profit     operating         assets                  profit       operating      assets
                 before   profit before     (excluding                before       profit before  (excluding
             exceptional    exceptional      software)            exceptional      exceptional    software)
                  items         items                   EBITA         items        items                     EBITA
                  2007          2007            2007    2007          2006         2006            2006      2006
                  US$m          US$m            US$m    US$m          US$m         US$m            US$m      US$m
----------      --------      --------        --------  ------       -------    
  -------        --------   ------

Latin              
America            380             -              58     438           335             -              52      387
Europe             620             -               2     622           484             -               1      485
North              
America            293             -               7     300           251             -               2      253
Africa and         
Asia               133           141               3     277           124           115               1      240
South
Africa:         --------      --------        --------  ------       -------    
  -------        --------   ------
- Beverages        380            25               -     405           387            24               -      411
- Hotels
and Gaming           -            57               1      58             -            44               -       44
                --------      --------        --------  ------       -------       -------        --------   ------
South
Africa:            380            82               1     463           387            68               -      455
Total
Corporate          (64)            -               -     (64)          (39)            -               -      (39)
                --------      --------        --------  ------       -------       -------        --------   ------
Group            1,742           223              71   2,036         1,542           183              56    1,781
                --------      --------        --------  ------       -------       -------        --------   ------

Year ended
31 March:                                                             2007          2007            2007     2007
                                                                      US$m          US$m            US$m     US$m
                                                                     -------       -------        --------   ------

Latin                                                                  
America                                                                810             -             105      915
Europe                                                                 730             -               3      733
North                                                                  
America                                                                366             -               9      375
Africa and                                                             
Asia                                                                   272           193               2      467
South
Africa:                                                              -------       -------        --------   ------
- Beverages                                                          1,043            59               -    1,102
- Hotels
and Gaming                                                               -           100               -      100
                                                                     -------       -------        --------   ------
South
Africa:                                                              1,043           159               -    1,202
Total
Corporate                                                             (101)            -               -     (101)
                                                                     -------       -------        --------   ------
Group                                                                3,120           352             119    3,591
                                                                     -------       -------        --------   ------

The group's share of associates' operating profit is reconciled to the share of
post-tax results of associates in the income statement as follows:

                                           Six months     Six months        Year
                                                ended          Ended       ended
                                              30/9/07        30/9/06     31/3/07
                                               US$m           US$m        US$m
               --------------------------     -------        -------     -------

Share of associates' operating profit           223            183         352
Share of associates' net finance cost            (5)            (6)         (9)
Share of associates' tax                        (55)           (52)       (102)
Share of associates' minority interests         (16)           (20)        (36)
                                              -------        -------     -------
                                                147            105         205
                                              -------        -------     -------


Excise duties of US$2,187 million (2006: US$1,887 million) have been incurred
during the six months as follows: Latin America US$621 million (2006: US$497
million); Europe US$551 million (2006: US$442 million); North America US$468
million (2006: US$461 million); Africa and Asia US$201 million (2006: US$152
million) and South Africa US$346 million (2006: US$335 million).


Beer volumes increase during the summer months leading to higher revenues being
recognised in the first half of the year in the Europe and North America
segments. Due to the spread of the business between Northern and Southern
hemispheres, the results for the group as a whole are not highly seasonal in
nature.


The following table provides a reconciliation of EBITDA (the net cash inflow
from operating activities before working capital movements) before cash
exceptional items to EBITDA after cash exceptional items. A reconciliation of
group EBITDA after cash exceptional items can be found in note 11.

                      EBITDA                             EBITDA
                 before cash                        before cash
                 exceptional  Exceptional           exceptional  Exceptional
Six months             items        items   EBITDA        items        items   EBITDA
ended 30
September:            2007         2007     2007         2006         2006     2006
                      US$m         US$m     US$m         US$m         US$m     US$m
---------------     --------     --------  -------    ---------     -------- 
-------
Latin America          545          (10)     535          493          (17)     476
Europe                 732            -      732          577            -      577
North America          372            -      372          325            -      325
Africa and Asia        172            -      172          159            -      159
South Africa:
Beverages              453            -      453          458            -      458
Corporate              (35)           -      (35)         (28)          (3)     (31)
                    --------     --------  -------    ---------     --------  -------
                     2,239          (10)   2,229        1,984          (20)   1,964
                    --------     --------  -------    ---------     --------  -------

Year ended 31
March:                                                   2007         2007     2007
                                                         US$m         US$m     US$m
                                                      ---------     --------  -------

Latin America                                           1,147          (25)   1,122
Europe                                                    936           (7)     929
North America                                             510            -      510
Africa and Asia                                           340            -      340
South Africa:
Beverages                                               1,200            -    1,200
Corporate                                                 (65)          (5)     (70)
                                                      ---------     --------  -------
                                                        4,068          (37)   4,031
                                                      ---------     --------  -------


3. Exceptional items

                                                              --------       --------   --------
                                                            Six months     Six months Year ended
                                                         ended 30/9/07  ended 30/9/06    31/3/07
                                                             Unaudited      Unaudited    Audited
                                                                US$m           US$m       US$m
                                                              --------       --------   --------

Subsidiaries' exceptional items included in operating
profit:

Latin America                                                    (52)           (24)       (64)
                                                              --------       --------   --------
Integration
and
restructuring
costs                                                            (69)           (24)       (64)
Profit on sale
of
subsidiaries                                                      17              -          -
                                                              --------       --------   --------

Europe                                                             -              -        (24)
                                                              --------       --------   --------
Integration
and
restructuring
costs                                                              -              -         (7)
Profit on sale
of land in
Italy                                                              -              -         14
Adjustment to
goodwill                                                           -              -        (31)
                                                              --------       --------   --------

Corporate
Bavaria
integration
costs                                                              -             (3)        (5)

Exceptional
items included
in operating
profit                                                           (52)           (27)       (93)
                                                              --------       --------   --------
                                                              --------       --------   --------
Taxation credit                                                   20              8         30
                                                              --------       --------   --------


2007

Latin America and Corporate

Integration and restructuring costs associated with the consolidation of Bavaria
of US$69 million were incurred during the period (six months ended 30/09/06:
US$27 million; year ended 31/03/07: US$69 million).


A net US$17 million profit on disposal has been recognised in Latin America on
the disposal of soft drinks businesses in Costa Rica and Colombia in the six
months ended 30 September 2007.



4. Taxation

  -----------------------------        --------           --------      --------
                                     Six months         Six months    Year ended
                                  ended 30/9/07      ended 30/9/06       31/3/07
                                      Unaudited          Unaudited       Audited
                                         US$m               US$m          US$m
  -----------------------------        --------           --------      --------
Current
taxation                                  466                384           780
                                       --------           --------      --------
- Charge for the period1                  486                377           833
- Adjustments in respect of
prior years                               (20)                 7           (53)
                                       --------           --------      --------
Withholding
taxes and
other taxes                                40                 48           119
                                       --------           --------      --------
Total current
taxation                                  506                432           899

Deferred
taxation                                   (9)                38            22
                                       --------           --------      --------
- Charge for the period2                  (11)                33            82
- Adjustments in respect of
prior years                                 8                  5             5
- Recognition of deferred
tax asset in connection
with the acquisition of
Birra Peroni                               -                  -           (31)
- Rate change                             (6)                 -           (34)
                                       --------           --------      --------

Total taxation                            497                470           921
                                       --------           --------      --------

Effective tax rate, before
amortisation of intangibles
(excluding software) and
exceptional items (%)                    33.5               35.7          34.5
                                       --------           --------      --------


The effective tax rate is calculated including share of associates' operating
profit before exceptional items and share of associates' tax before exceptional
items. This calculation is on a basis consistent with that used in prior years
and is also consistent with other group operating metrics.


 1 The current tax charge for the period includes a UK corporation tax charge of
   US$Nil (six months ended 30/9/06: US$4 million; year ended 31/3/07: US$Nil).


 2 The deferred tax charge for the period includes a UK corporation tax credit 
   of US$9.3 million (six months ended 30/9/06: US$5 million; year ended 
   31/3/07: US$9 million).



5. Earnings per share

                                       --------           --------      --------
                                     Six months         Six months    Year ended
                                  ended 30/9/07      ended 30/9/06       31/3/07
                                      Unaudited          Unaudited       Audited
                                       US cents           US cents      US cents
                                       --------           --------      --------

Basic earnings per share                 63.9               52.9         110.2
Diluted earnings per share               63.5               52.6         109.5
Headline earnings per share              65.7               55.4         116.4
Adjusted basic earnings per
share                                    69.1               56.6         120.0
Adjusted diluted earnings per
share                                    68.7               56.3         119.3
                                       --------           --------      --------



                                                --------    --------    --------
                                                 30/9/07     30/9/06     31/3/07
                                               Unaudited   Unaudited     Audited
                                             Millions of Millions of Millions of
                                                  shares      shares      shares
                                                --------    --------    --------
The weighted average number of shares was:
Ordinary shares                                  1,503       1,498       1,500
ESOP trust ordinary shares                         (4)         (4)         (4)
                                                --------    --------    --------
Basic shares                                     1,499       1,494       1,496
Dilutive ordinary shares
from share options                                  10           9           9
                                                --------    --------    --------
Diluted shares                                   1,509       1,503       1,505
                                                --------    --------    --------


The calculation of diluted earnings per share excludes 6,046,925 (2007:
6,039,681) share options that were antidilutive for the year because the
exercise price of the option exceeds the fair value of the shares during the
period, and 6,818,498 (2007: 7,707,155) share options that were anti-dilutive
for the year because the performance conditions attached to the options have not
been met. These options could potentially dilute earnings per share in the
future.


324,374 share options and awards were granted after 30 September 2007 and before
the date of signing of these financial statements.


Adjusted and headline earnings

The group has also presented an adjusted earnings per share figure to exclude
the impact of amortisation of intangible assets (excluding capitalised software)
and other non-recurring items in order to present a more useful comparison for
the years shown in the consolidated financial statements. Adjusted earnings per
share has been based on adjusted headline earnings for each financial year and
on the same number of weighted average shares in issue as the basic earnings per
share calculation. Headline earnings per share has been calculated in accordance
with the UK Society of Investment Professionals (UKSIP) formerly the Institute
of Investment Management and Research Statement of Investment Practice No.1
entitled 'The Definition of Headline Earnings'. The adjustments made to arrive
at headline earnings and adjusted earnings are as follows:

                                       --------           --------      --------
                                     Six months         Six months    Year ended
                                  ended 30/9/07      ended 30/9/06       31/3/07
                                      Unaudited          Unaudited       Audited
                                         US$m               US$m          US$m
                                       --------           --------      --------

Profit for the financial
period attributable
to equity holders of the
parent                                    958                790         1,649
(Profit) / loss on
derivatives on
capital items1                             -                 (1)          (10)
Amortisation of intangible
assets (excluding
capitalised software)                      71                 56           119
Impairment of property,
plant and equipment                         -                  2            13
Profit on sale
of subsidiaries                           (17)                 -             -
Profit on sale
of property, plant and
equipment                                  (4)                (6)          (20)
Adjustment to
goodwill                                    -                  -            31
Tax effects of
the above items                           (23)               (17)          (43)
Minority interest
effects                                     -                  3             2
                                       --------           --------      --------
Headline earnings (basic)                 985                827         1,741
Integration /
reorganisation costs (net of
tax effects)                               51                 19            55
                                       --------           --------      --------
Adjusted
earnings                                1,036                846         1,796
                                       --------           --------      --------


 1 This does not include all derivative movements but includes those in relation
   to capital items for which hedge accounting cannot be applied.



6. Dividends paid and proposed


Dividends paid are as follows:
                                       --------           --------      --------
                                     Six months         Six months    Year ended
                                  ended 30/9/07      ended 30/9/06       31/3/07
                                      Unaudited          Unaudited       Audited
                                       US cents           US cents      US cents
                                       --------           --------      --------

Prior year final dividend
paid per ordinary share                  36.0               31.0          31.0
Current year interim
dividend paid per ordinary
share                                       -                  -          14.0
                                       --------           --------      --------


The interim dividend declared of 16.0 US cents per ordinary share is payable on
21 December 2007 to ordinary shareholders on the register as at 30 November 2007
and will absorb an estimated US$241 million of shareholders' funds.



7. Property, plant and equipment


Net book value at:
                                       --------           --------      --------
                                     Six months         Six months    Year ended
                                  ended 30/9/07      ended 30/9/07       31/3/07
                                      Unaudited          Unaudited       Audited
                                         US$m               US$m          US$m
                                       --------           --------      --------

At beginning of period                  6,750              6,337         6,337
Exchange adjustments                      355               (223)           98
Additions                                 795                450         1,232
Disposals                                 (45)               (19)          (94)
Depreciation                             (410)              (355)         (737)
Other movements                           (12)               (21)          (86)
                                       --------           --------      --------
At end of period                        7,433              6,169         6,750
                                       --------           --------      --------


Contracts placed for future capital expenditure not provided in the financial
statements amount to $606 million.



8a. Net debt


Net debt is analysed as follows:

                                            --------      --------      --------
                                               As at         As at         As at
                                             30/9/07       30/9/06       31/3/07
                                           Unaudited     Unaudited     Unaudited
                                              US$m          US$m          US$m
                                            --------      --------      --------

Borrowings                                  (7,154)       (7,260)       (7,029)
Borrowings-related derivative financial
instruments                                   (154)          (96)         (127)
Overdrafts                                    (232)         (206)         (187)
Finance leases                                 (15)          (17)          (15)
                                            --------      --------      --------
Gross debt                                  (7,555)       (7,579)       (7,358)

Loan participation deposit                       -           190             -
Cash and cash equivalents (excluding
overdrafts)                                    501           657           481
                                            --------      --------      --------
Net debt                                    (7,054)       (6,732)       (6,877)
                                            --------      --------      --------

Cash and cash equivalents on the Balance Sheet are reconciled to cash and cash
equivalents on the Cash Flow as follows:

                                            --------      --------     --------
                                                As at         As at        As at
                                              30/9/07       30/9/06      31/3/07
                                            Unaudited     Unaudited      Audited
                                               US$m          US$m         US$m
                                            --------      --------     --------

Cash and cash equivalents (Balance Sheet)       501           657          481
Overdrafts                                     (232)         (206)        (187)
Legal right of offset                             -           185            -
                                             --------      --------     --------
Cash and cash equivalents (Cash Flow)           269           636          294
                                             --------      --------     --------



8b. Analysis of net debt


Net debt is analysed as follows:

                        --------    --------     --------   -------    --------  --------
                   Total cash and  Borrowings   Derivative Financial Total gross  Net debt
                             cash                financial    leases  borrowings
                      equivalents              instruments
                           US$m        US$m         US$m      US$m        US$m      US$m
                        --------    --------     --------   -------    --------  --------

At 31 March
2007                        294      (7,029)        (127)      (15)     (7,171)   (6,877)
Exchange
adjustments                 (18)       (161)           -        (1)       (162)     (180)
Cash flow                    (7)         46           (9)        2          39        32
Other movements               -         (10)         (18)       (1)        (29)      (29)
                         --------    --------     --------   -------    --------  --------
At 30
September 2007              269      (7,154)        (154)      (15)     (7,323)   (7,054)
                         --------    --------     --------   -------    --------  --------



9. Share capital

                                      --------        --------        --------        -------
                               Ordinary shares      Non-voting Deferred shares  Nominal value
                                of 10 US cents     convertible      of £1 each
                                          each      shares of 
                                                   10 US cents 
                                                        each
                                        '000            '000            '000           US$m
                                      --------        --------        --------        -------
At 1 April 2006                    1,497,845          77,368              50            158
Issue of shares - share
purchase, option and
award scheme                           2,823               -               -              -
                                      --------        --------        --------        -------
At 30 September 2006               1,500,668          77,368              50            158
Issue of shares - share
purchase, option and
award scheme                           1,520               -               -              -
                                      --------        --------        --------        -------
At 31 March 2007                   1,502,188          77,368              50            158
Issue of shares - share
purchase, option and
award scheme                           2,018               -               -              -
                                      --------        --------        --------        -------
At 30 September 2007               1,504,206          77,368              50            158
                                      --------        --------        --------        -------



10. Statement of changes in shareholders' equity


               Share   Share  Merger Safari     Foreign Available Retained  Total   Minority    Total
             capital premium  relief    and    currency  for sale earnings          interest   equity
                             reserve    EBT translation  reserve*                                    
                                     shares    reserve*                                              
              US$m    US$m    US$m   US$m        US$m      US$m     US$m     US$m     US$m     US$m
              ------ ------- ------- -------   --------    ------  ------- --------  ------- --------  
At 1 April     158   6,099   3,395   (655)        102         -    3,944   13,043      542   13,585  
2006                                                                                                 
Currency                                                                                             
translation                                                                                          
movements on                                                                                         
foreign                                                                                              
currency                                                                                             
investments      -       -       -      -        (290)        -        -     (290)     (12)    (302) 
Net                                                                                                  
investment                                                                                           
hedges -                                                                                             
fair               
value losses                                                                                         
in period        -       -       -      -         106         -        -      106        -      106                     
                                                              
Deferred tax                                                                                         
charge on                                                                                            
items taken                                                                                          
to               
equity           -       -       -      -           -         -       (9)      (9)       -       (9)                    
                                                                
Acquisitions -                                                                                                    
minority          
interests        -       -       -      -           -         -        -        -      (10)     (10)                    
                                                               
Other            
movements        -       -       -      -           4         -      (10)      (6)      (2)      (8)                    
                                                                
Profit for                                                                                           
the               
financial                                                                                            
year             -       -       -      -           -         -      790      790      118      908                     
                                                               
Dividends         
paid             -       -       -      -           -         -     (473)    (473)     (90)    (563)                    
                                                               
Issued            
capital          -      24       -      -           -         -        -       24        -       24                     
                                                               
Payment for                                                                                          
purchase of                                                                                          
own shares                                                                                           
for               
share trusts     -       -       -     (8)          -         -        -       (8)       -       (8)                    
                                                               
Equity                                                                                               
settled                                                                                              
share                                                                                                
incentive          
plans            -       -       -      -           -         -       14       14        -       14                     
                                                              
At 30                                                                                                
September     ------ ------- ------- -------   --------    ------  -------
--------  ------- --------   
2006           158   6,123   3,395   (663)        (78)        -    4,256   13,191      546   13,737                     
              ------ ------- ------- -------   --------    ------  ------- --------  ------- --------                   

              ------ ------- ------- -------   --------    ------  ------- --------  ------- --------                   
At 31 March                                                                                          
2007           158   6,137   3,395   (683)        459         7    4,933   14,406      595   15,001  
Currency                                                                                             
translation                                                                                          
movements on                                                                                         
foreign                                                                                              
currency                                                                                             
investments      -       -       -      -         794         -        -      794       18      812  
Net                                                                                                  
investment                                                                                           
hedges -                                                                                             
fair              
value gains                                                                                          
in                                                                                                   
period           -       -       -      -         (90)        -        -      (90)       -      (90)                    
                                                               
Other             
movements        -       -       -      -           -         -       (2)      (2)       -       (2)                    
                                                               
Profit for                                                                                           
the                
financial                                                                                            
year             -       -       -      -           -         -      958      958      124    1,082                     
                                                              
Dividends        -       -       -      -           -         -     (537)    (537)     (98)    (635) 
Issued             
capital          -      25       -      -           -         -        -       25        -       25                     
                                                              
Payment for                                                                                          
purchase of                                                                                          
own shares                                                                                           
for               
share trusts     -       -       -     (9)          -         -        -       (9)       -       (9)                    
                                                               
Cash flow                                                                                            
hedge fair                                                                                           
value                                                                                                
deferred           
to equity        -       -       -      -           7         -        -        7        -        7                     
                                                              
Equity                                                                                               
settled                                                                                              
share                                                                                                
incentive         
plans            -       -       -      -           -         -       28       28        -       28                     
                                  
At 30                                                                                                
September    ------ ------- ------- -------   --------    ------  -------
--------  ------- --------    
2007           158   6,162   3,395   (692)      1,170         7    5,380   15,580      639   16,219                     
             ------ ------- ------- -------   --------    ------  ------- --------  ------- --------                    
          
* These are classified as 'Other Reserves' on the Group Consolidated Balance
  Sheet.



11. Reconciliation of profit for the year to net cash generated from operations

                                       --------           --------      --------
                                     Six months         Six months    Year ended
                                  ended 30/9/07      ended 30/9/06       31/3/07
                                      Unaudited          Unaudited       Audited
                                         US$m               US$m          US$m
                                       --------           --------      --------

Profit for the year                     1,082                908         1,883
Taxation                                  497                470           921
Share of
post-tax
results of
associates                               (147)              (105)         (205)
Interest
receivable                                (96)              (146)         (240)
Interest
payable and
similar
charges                                   354                388           668
                                       --------           --------      --------
Operating
profit                                  1,690              1,515         3,027
Depreciation:
Property,
plant and
equipment                                 297                270           550
Containers                                113                 85           187
Container
breakages,
shrinkage and
write-offs                                 11                 11            44
Loss/(profit)
on sale of
property,
plant and
equipment                                   8                 (6)           (6)
Exceptional
profit on sale
of property,
plant and
equipment
(Europe)                                    -                  -           (14)
Impairment of
property,
plant and
equipment                                   -                  2            13
Amortisation
of intangible
assets                                     94                 81           162
Net (gain) /
loss from fair
value hedges                                3                 (8)           (2)
(Gain) on
disposal of
subsidiaries                              (17)                 -             -
Dividends
received from
other
investments                                (1)                (1)           (1)
Charge with
respect to
share options                              28                 14            31
Restructuring
and
integration
costs (Latin
America,
Corporate)                                  -                  -            10
Adjustment to
goodwill
(Europe)                                    -                  -            31
Other non-cash
movements                                   3                  1            (1)
                                       --------           --------      --------
Net cash
generated from
operations
before working
capital
movements
(EBITDA)                                2,229              1,964         4,031
Net inflow /
(outflow) in
working
capital                                  (101)               188           (13)
                                       --------           --------      --------
Net cash
generated from
operations                              2,128              2,152         4,018
                                       --------           --------      --------


Cash generated from operations include cash outflows relating to exceptional
costs of US$10 million in respect of South America integration and restructuring
costs (six months ended 30/09/2006: US$20 million).


12. Business acquisitions and disposals


There have been no material acquisitions or disposals during the period under
review.


13. Related party transactions


The group's significant related parties are its associates as described in the
SABMiller plc Annual Report for the year ended 31 March 2007. There have been no
material changes to the type of related party transactions described therein.


14. Contingencies and commitments


A ZAR1.6 billion interest-bearing bond was issued during the period under
review. The interest rate applicable to this bond is 9.935% pa. The bond is a
five year, bullet repayment bond with a semi-annual coupon, commencing on 19
July 2007, maturing on 19 July 2012.


Other than the above, there have been no material changes in contingencies and
commitments for the period under review.


15. Subsequent events


On 9 October, SABMiller plc and Molson Coors Brewing Company announced that they
had signed a letter of intent to combine the US and Puerto Rico operations of
their respective subsidiaries, Miller and Coors, in a joint venture to create a
stronger, brand-led US brewer with the scale, resources and distribution
platform to compete more effectively in the increasingly competitive US
marketplace. The transaction is subject to negotiation of definitive agreements,
which is expected by the end of 2007. Closing of the transaction is also subject
to obtaining clearances from the US competition authorities and certain other
regulatory clearances and third-party consents, as required, and is not expected
before mid 2008.




SABMiller plc

ADMINISTRATION





                                 SABMiller plc

                           (Registration No. 3528416)


                               Company Secretary

                                 John Davidson


                               Registered Office

                                SABMiller House

                               Church Street West

                                     Woking

                                Surrey, England

                                    GU21 6HS

                            Telefax +44 1483 264103

                           Telephone +44 1483 264000


                                  Head Office

                               One Stanhope Gate

                                London, England

                                    W1K 1AF

                            Telefax +44 20 7659 0111

                           Telephone +44 20 7659 0100


                                Internet address

                            http://www.sabmiller.com


                               Investor Relations

                        investor.relations@sabmiller.com

                           Telephone +44 20 7659 0100



                              Independent Auditors

                           PricewaterhouseCoopers LLP

                               1 Embankment Place

                                London, England

                                    WC2N 6RH

                            Telefax +44 20 7822 4652

                           Telephone +44 20 7583 5000


                           Registrar (United Kingdom)

                               Capita Registrars

                                  The Registry

                               34 Beckenham Road

                                   Beckenham

                                 Kent, England

                                    BR3 4TU

                            Telefax +44 20 8658 3430

                    Telephone +44 20 8639 2157 (outside UK)

                       Telephone 0870 162 3100 (from UK)


                            Registrar (South Africa)

               Computershare Investor Services 2004 (Pty) Limited

                        70 Marshall Street, Johannesburg

                                  PO Box 61051

                               Marshalltown 2107

                                  South Africa

                            Telefax +27 11 370 5487

                           Telephone +27 11 370 5000


                          United States ADR Depositary

                              The Bank of New York

                                 ADR Department

                               101 Barclay Street

                               New York, NY 10286

                            United States of America

                            Telefax +1 212 815 3050

                           Telephone +1 212 815 2051

                       Internet: http:// www.bankofny.com

                 Toll free +1 888 269 2377 (USA & Canada only)










                      This information is provided by RNS
            The company news service from the London Stock Exchange

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