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SABMiller PLC - Preliminary Announcement

RNS Number : 4983U
  SABMiller PLC
  15 May 2008

Preliminary Announcement

15 May 2008


SABMiller plc, one of the world's leading brewers with operations and
distribution agreements in over 60 countries across six continents, today
reports its preliminary (unaudited) results for the twelve months to 31 March

Operational Highlights
*     Group lager volumes up 11% to 239 million hectolitres (hl), organic growth
of 7%
*     EBITA up 15%, and 9% on an organic constant currency basis despite rising
input costs
*     Mix benefits and strong pricing improve Miller EBITA in the US
*     Volume, price and productivity gains drive excellent earnings growth in
Europe - EBITA up 30%
*     Latin America lager volume growth of 5% despite exceptional prior year -
EBITA up 17%
*     Africa organic volumes of lager up 6% - substantial investment programme
to capture growth opportunities
*     CR Snow volume growth continues ahead of the China market - Snow brand up
*     South Africa lager volumes level - a satisfactory result given loss of a
premium brand

                                         2008    2007    %
                                         US$m   US$m   change

 Revenue (a)                           21,410  18,620    15

 EBITA (b)                              4,141   3,591    15

 Adjusted profit before tax (c)         3,639   3,154    15

 Profit before tax                      3,264   2,804    16

 Adjusted earnings (d)                  2,147   1,796    20

 Adjusted earnings per share (d)
 - US cents                             143.1   120.0    19
 - UK pence                              71.2    63.4    12
 - SA cents                           1,021.2   847.1    21

 Basic earnings per share (US cents)    134.9   110.2    22

 Dividends per share (US cents)          58.0    50.0    16

 Net cash generated from operations     4,276   4,018    6

Meyer Kahn, Chairman of SABMiller, said:
'This strong outturn to the year is particularly pleasing given the scale of the
challenge we faced at its outset, with exceptional prior year comparatives,
rising input costs and an increasingly competitive environment in many of our
markets. It is a
clear testament to the strength of our brands and the group's operational
capability that we have been able to deliver such a good performance.'

(a) Revenue excludes the attributable share of associates' revenue of US$2,418
million (2007: US$2,025 milion).
(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. As described in the Financial Review, EBITA is used
throughout the preliminary announcement.
(c) Adjusted profit before tax comprises EBITA less adjusted net finance costs
of US$491 million (2007: US$428 million) and share of associates' net finance
costs of US$11 million (2007: US$9 million).
(d) Reconciliation of adjusted earnings to the statutory measure of profit
attributable to equity shareholders is provided in note 6.


                                         Reported   Organic, constant
                                   2008     growth            currency
                                  EBITA          %              growth
                                   US$m                              %

 Latin America                    1,071         17                   6
 Europe                             952         30                  15
 North America                      477         27                  27
 Africa and Asia                    568         22                  16
 South Africa: Beverages          1,026        (7)                 (6)
 South Africa: Hotels and Gaming    141         41                  42
 Corporate                         (94)        n/a                 n/a
 Group                            4,141         15                   9

Business review

This strong result for the year has been achieved despite challenging
comparative growth rates across a number of markets in the prior year and a
substantial rise in input costs for the group as a whole.  Total beverage
volumes were up 6%, to 288
million hl and total lager volumes were up 11% to 239 million hl, including the
impact of acquisitions in China and Europe. A 15% increase in group revenue
translated into EBITA growth of 15% to US$4,141 million, or 9% on an organic
constant currency
basis. This reflects the benefit of price increases, mix improvements and
productivity gains, all of which have offset the rise in input costs, in
addition to favourable currency rates against the US dollar. The group's ability
to recover these higher
costs underlines the strength of its brands and its operational capability in
enhancing net revenue per hectolitre through effective control of package mix
and portfolio pricing. The group EBITA margin remained level with the prior year
at 17.4%. Earnings
benefited from currency strength and lower effective tax rates in certain
jurisdictions. Adjusted earnings and adjusted earnings per share grew 20% and
19% respectively on the prior year.

During the year, underlying consumer demand in the group's developing markets
has remained strong, with high levels of fixed investment within Africa, Asia
and South America contributing to good GDP growth in these regions. Over the
course of the year
the group has invested some US$1,978 million in additional production capacity,
new containers and distribution, to ensure the business will be able to continue
to take advantage of the growth in its markets. The group's premium brand
strategy has driven
mix benefits across a number of markets, with significant investment behind new
product and packaging innovations.

Net cash generated from operations after working capital movements was 6% above
the prior year, reflecting an increase in working capital across the group as at
31 March 2008, due principally to the timing of Easter. Gearing increased during
the year
to 49.7% from 45.8% principally as a result of increased borrowings to fund the
acquisition of the Grolsch business and the capital expenditure programme.  The
Board has recommended a final dividend of 42 US cents per share, which will be
paid to
shareholders on 7 August 2008. This brings the total dividend to 58 US cents, a
16% increase.

These results demonstrate both the growth momentum in the business and the
substantial brand equity resulting from the investment made over many years in
the group's portfolio of some 200 local and regional beer brands.

*     Latin America achieved lager volume growth of 5%, following exceptionally
high growth in the prior year. Whilst a consumer slow-down in Colombia and
price-driven competitive pressure in Peru represent some challenges, the group
has continued its
programme of investment and modernisation in the Andean region and the full
benefit of these activities is still to be realised.  There have been
significant fixed cost productivity improvements. EBITA rose by 6% in organic
constant currency, or 17% on a
reported basis.

*     The group's business in Europe delivered another excellent performance,
with organic lager growth of 8%, and EBITA growth of 15% in organic constant
currency and 30% on a reported basis. Strong volume growth in Poland, Romania
and Russia was
complemented by market share gains in several countries.  Price increases, mix
improvements and the introduction of new products and packs, assisted by
operational efficiencies, offset significant brewing raw material and packaging
cost increases. In the
Czech Republic, the Kozel brand grew by 19% in its domestic market and continues
to establish itself as a powerful regional brand, selling 2.8 million hl over
the period. In Italy, Birra Peroni was the fastest growing brewer in 2007, with
a share gain of
almost 100 basis points in a level market. The company's core brands, Peroni and
Nastro Azzurro, grew volumes by 7% and 8% respectively, reflecting a successful
on-premise strategy in the north of the country.

*     In the US, Miller continued to migrate its portfolio to higher margin and
higher growth segments with the launch of Miller Chill, a 'chelada-style' light
beer brewed with lime and salt.  One of the most successful brand launches in
history, Miller Chill sold almost half a million barrels in its first year,
contributing to a 49% increase in Miller's worthmore portfolio, which includes
Sparks, Peroni and Leinenkugel's, all of which grew at double digit rates. 
Whilst higher fuel costs
and declining real estate prices impacted consumer spending in the second half,
Miller's overall domestic sales to retailers for the year were up 0.7% on an
organic basis, with the company's flagship brand, Miller Lite, up 1.1%. To
capture the continuing
consumer preference for light beers, Miller has test marketed new light beers,
Miller Genuine Draft 64 and the Miller Lite Brewer's Collection, which will be
rolled out nationally in the next financial year.

*     Robust economic conditions on the African continent, with high resource
prices and investment underpinning growth, contributed to organic lager volume
growth of 6% from the group's Africa operations (excluding Zimbabwe). A
significant capital
expenditure programme is underway in these markets, including the construction
of several new greenfield breweries to exploit anticipated future volume growth.
In Asia, the group's associate in China, CR Snow, acquired a further four
breweries in the year
and grew volumes by 15% on an organic basis, ahead of the overall market. The
Snow brand enjoyed exceptional growth of 63%, cementing its position amongst the
top three beer brands in the world by volume.

*     In South Africa, where we began the year with the loss of a major premium
brand to a competitor in March 2007, overall volumes were level with the prior
year representing a satisfactory result. The decline in premium volumes was
mitigated by the successful launch of Hansa Marzen Gold and growth in excess of
100% in Peroni Nastro Azzurro. The robust performance of Hansa Pilsner and
Castle Milk Stout underpinned mid single digit growth in the mainstream
category, whilst soft drinks

grew 4% despite cycling tough comparatives in the final quarter. EBITA for the
period declined 6% on a constant currency basis, reflecting the lower premium
volumes, a large increase in brewing raw material costs and a significant
increase in distribution

*     In December 2007, SABMiller plc and Molson Coors Brewing Company signed a
definitive agreement to combine the US and Puerto Rican operations of their US
subsidiaries, Miller and Coors, in a joint venture. The transaction, which is
expected to
generate approximately US$500 million of synergies in the third full year of
operation, is subject to US anti-trust clearance and is not expected to complete
before the middle of calendar year 2008. Following completion it will create a
brand-led US brewer with the scale, resources and distribution platform
necessary in the increasingly competitive US market.

*     During the period the group also announced the acquisition of Royal
Grolsch NV, the iconic Dutch brewer with a rich heritage dating back to 1615.
Grolsch's domestic market is in the Netherlands, but it has important
international positions in a
number of markets including the United Kingdom and the US. This international
footprint will be expanded with plans to introduce the Grolsch brand into a
number of SABMiller's markets in the course of the next financial year.  On 14
May 2008 the group
announced that it had reached agreement in principle to transfer the US
importation rights for the Grolsch brand to Miller. The group also completed the
acquisition of Polish brewer Browar Belgia and the Australian brewer Bluetongue
in addition to
announcing the future construction of a brewery in New South Wales through
Pacific Beverages, SABMiller's joint venture with Coca-Cola Amatil.


This has been another year of strong growth for the group. In the current year,
volume growth in the first half will be affected by high comparative growth
rates, and pressure on input costs will continue to increase although pricing
and mix benefits
are again expected to compensate for these cost increases.  The economic outlook
across our global footprint, which is biased towards growth markets in
developing countries, remains positive, and we will continue to benefit from the
strength of our
brands, operational capability and investment for growth.

                                 SABMiller plc                                     Tel: +44 20 7659

 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 9.30am
(BST) on 15 May 2008.
 This announcement, a copy of the slide presentation and video interviews with
management are available
                                           on the SABMiller
        plc website at Video interviews with management can
also be found at

         High resolution images are available for the media to view and download
free of charge

Copies of the press release and detailed Preliminary 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

 Financial summary                                          2008    2007    %

 Group revenue (including share of associates) (US$m)      5,251   4,392   20

 EBITA* (US$m)                                             1,071     915   17

 EBITA margin (%)                                           20.4    20.9

 Sales volumes (hl 000)
 - Lager                                                  36,846  34,948    5
 - Soft drinks                                            18,484  19,474  (5)
 - Soft drinks organic                                    18,484  18,564  (0)

* In 2008 before exceptional items of US$61 million (2007: US$64 million) being
restructuring costs in Latin America, partially offset by the net profit on the
sale of soft drink and juice businesses in Costa Rica and Colombia respectively.

In Latin America, execution of our strategy to renovate the beer category has
continued and has delivered underlying performance in line with our expectations
while laying a sound foundation for future growth. In the year, lager volumes
ended 5% up on
the prior year despite high comparative volume growth, particularly in the
second half. Reported EBITA performance benefited from strong local currencies,
particularly the Colombian peso which strengthened by 15% against the US dollar
(on a full year
average basis). There have been significant fixed cost productivity improvements
across the business. Reported EBITA margin was down on prior year due to rising
raw material input costs and a 40 basis point negative impact as a result of
changes to the
basis of recovering distribution costs. On an organic constant currency basis,
EBITA growth was 6%, while revenue per hectolitre increased by 4% on a like for
like basis.  Significant capital investment was incurred to increase capacity,
production and logistics assets, upgrade returnable containers and improve
product quality.

In Colombia, the brand portfolio upgrade continued with the launch of Redd's in
the premium segment and the relaunches of Aguila and Aguila Light in the
mainstream segment. Our Pony Malta brand was also relaunched with a new design
and a new 350ml PET
container. Premium lager volumes grew by over 60% in the year, largely due to
the continued strong performance of Club Colombia. The new 500ml returnable
bottle for Aguila and various PET packs for Pony Malta further helped to
modernise and widen the
appeal of the product range.

Trading conditions softened in the second half, as consumer credit interest
rates continued to rise and inflationary cost pressures resulted in retail price
increases. Nevertheless revenue per hectolitre improved by 4% on a constant
currency basis
with revenue management and a focus on price compliance assisting price and mix

Lager growth rates slowed in the second half of the year, ending up 4% for the
full year. However, our share of the alcohol market increased by 190 basis
points to 64.7%, gaining share mostly from local spirits.

Further gains were made in operating efficiencies and reducing overhead costs,
in order to assist in offsetting rising input costs. The majority of the
structural changes to the route-to-market and the product quality investments
have now been
implemented, while trade marketing capability has been enhanced, establishing a
solid platform for future growth.

The new Valle brewery was commissioned in March 2008, with an initial annual
capacity of 3.2 million hl, which will bring supply and demand into better
balance in the western region. Further capacity investment will be required at
the Barranquilla
brewery and at maltings plants in the coming year. During the year the juice
business in Colombia was sold.

In Peru economic conditions have been favourable with annual GDP growth of
nearly 9%. Lager volumes were up 8% on prior year despite major disruptions to
distribution due to mudslides and a severe earthquake. The market has become
competitive with the entry of a second competitor in the economy segment. Our
Pilsen Trujillo brand has been successfully repositioned nationally to combat
low priced competition.

Premium volumes and share have improved with the relaunch of Cusquena in the
premium segment, which ended the year at 8% market share, partially offsetting
the mix impact of the growth of the economy segment including Pilsen Trujillo.
Revenue per
hectolitre has improved 1% on a constant currency basis. Our overall market
share ended the fourth quarter at 84% and the beer market has gained share of
alcohol and now stands at 51%. The operation continues to enhance its brand
portfolio and invest for
future demand with capacity and quality upgrades. The renovation of containers
and the distribution fleet is now largely complete and the programme of trade
marketing enhancements is being rolled out.

Our Ecuador operations delivered a commendable performance despite lower
economic growth, political uncertainty and torrential rains in the fourth
quarter. The operation has focused on securing channel advocacy by the
installation of over 5,000
coolers and our market mapping to identify further opportunities for growth is
complete. The change in our route-to-market has commenced with positive
reception in the areas affected. Lager volume growth of over 5% was driven by
our flagship brand
Pilsner, following its relaunch in October 2007, and the implementation of
national pricing in the same month. The premium portfolio performed well led by
the renovation of the Club brand, which has been successfully repositioned in
the premium segment,
whilst maintaining previous volumes. Beer's share of alcohol remained in line
with the prior year at 41% and our lager market share improved by 80 basis
points on a full year basis to 96%, despite aggressive pricing campaigns from
our main competitor.
Positive brand and pack mix and increased prices have boosted revenue.

In Honduras lager volume growth of 4% was fuelled by 10% growth in premium
segment volumes, led by our brands Barena and Port Royal. Price compliance
initiatives and our beer outlet and cooler expansion programmes contributed
positively to volume
growth. Revenue management was supported by premium volumes growing to over 50%
of the portfolio. Renewed focus is now being placed on affordability and the
attractiveness of our mainstream brands. Soft drinks reported growth of 9%, with
our Tropical

brand achieving growth of 23%, following a renewed imaging campaign. Our market
share of soft drinks improved by 4% to 55% through improved sales execution
activities, despite continuing competition in the soft drink market and the
shift in mix to family
one way packs.

In Panama lager volumes were up by 13% driven by the relaunch and upsizing of
our mainstream brands Balboa and Atlas, implemented with a simultaneous price
increase during October 2007. Share gains were strong and share of the beer
market increased by
120 basis points on a full year basis to 85%. The positive impact of volume
growth and price and mix benefits boosted revenue and were partially offset by
increases in raw material costs.

El Salvador was impacted by tough economic conditions but total volumes grew by
1% with market share gains in both beer and soft drinks despite high levels of
competition and high comparatives. The operation has also seen success in its
efforts with premium lager volumes up 9%, driven by Golden Light.


 Financial summary                                      2008    2007    %

 Group revenue (including share of associates)(US$m)   5,248   4,078   29

 EBITA* (US$m)                                           952     733   30

 EBITA margin (%)*                                      18.1    18.0

 Sales volumes (hl 000)
 - Lager                                              43,904  40,113    9
 - Lager organic                                      43,401  40,113    8
 - Soft drinks                                            57      27  111

* In 2007 before net exceptional costs of US$24 million  being profit on
disposal of land in Italy of US$14 million less restructuring costs of US$7
million primarily in Slovakia and an adjustment to goodwill on acquisition of
US$31 million for Birra
Peroni .

Europe delivered another excellent result with total lager volume growth of 9%
(organic 8%) within which premium volumes grew 11%. Volumes were particularly
strong in Poland, Romania and Russia and were assisted by warm weather in the
earlier months,
but cycled an exceptionally mild winter in the second half of the prior year.
Brewing raw material and packaging costs increased significantly. However, the
pricing environment has shown some signs of improvement and with positive brand
mix has resulted
in constant currency revenue per hectolitre growing by 4%. This, together with
productivity improvements, has more than offset higher input costs and EBITA
margin was up 10 basis points. Marketing expenditure has increased but has
benefited from scale
economies. Reported EBITA growth of 30% was impacted by currency translation
gains and also included Royal Grolsch from mid February 2008. On an organic
constant currency basis, EBITA growth was 15%.

In Poland, strong economic fundamentals underpinned growth of all alcoholic
beverages. Our organic domestic lager volumes increased 11% (with inorganic
growth of 12%) against industry growth of 7% and market share for the year was
up 220 basis points
to 40.8%. Tyskie and Zubr, Poland's two leading beer brands, grew volumes by 9%
and 17% respectively, assisted by national consumer promotions, leveraging
sponsorships and increasing on-premise distribution. Lech grew 12% supported by
strong trade
activation, utilising music and leisure associations. Premium brand Redd's, with
its three flavour variants, grew 21% including sales of a new sleek can. We
increased prices by an average of 3% across the portfolio, with a similar
increase in constant
currency revenue per hectolitre being achieved, continuing the trend started in
the previous year.  Trade marketing support was enhanced by new automated data
interchange with our main distributors and the placement of additional coolers
in the trade.
Further capacity expansion brought total capacity to over 17 million hl, while
current year sales volume was 14.4 million hl. In January 2008, we completed the
acquisition of Browar Belgia.

In Czech, our strategy is to pursue value rather than volume in this mature
market. Beer industry volumes were up less than 1% and within this our domestic
volumes were marginally ahead. Focused channel segmentation, expansion in
on-premise, increased
pricing and premiumisation led to an increase in constant currency revenue per
hectolitre of 5% and an EBITA increase despite significantly higher commodity
prices. In the premium segment our national flagship brand Pilsner Urquell grew
3%, supported by
exclusively branded on-premise outlets and Beer theatre concepts in the modern
off-premise channel. In the specialty segment, we introduced the Master brand
with super-premium pricing, and the Frisco brand continued its growth, growing
23%. In mainstream,
Kozel's 19% domestic volume growth offset Gambrinus' 5% decline as our average
6% price increase prompted some switching. Kozel continued developing as a
successful regional brand with annual volumes of 2.8 million hl, up 12%
regionally. Significant cost
productivity has been achieved in marketing and distribution by leveraging scale
and rationalising media activities.

In Russia beer industry volumes grew 10% and share of the total alcohol market
increased 3% to 32%. Rapid growth in real incomes is driving share gains for the
premium beer segment and our volumes were up 14% as we increased market share.
We expanded
national retail coverage with an increase of 300 staff in the sales force, and
installed over 75,000 coolers.  We achieved average price increases of 11%
across our portfolio over the year. Our biggest brand Zolotaya Bochka grew 16%
with strong marketing
support. Miller Genuine Draft was up 9%, to almost 1 million hl, driven by
expanding distribution of the new half litre bottle, and Kozel grew 13%. Redd's
has new primary and secondary packaging, including a new can, and grew by 22%.
The second production
site at Ulyanovsk is on track for commissioning in May 2009 and its initial
capacity has been increased to 4 million hl. Until then, with existing
operations at full capacity, contract brewing arrangements have been put in
place over the summer period.

In Italy, Birra Peroni was the fastest growing brewer in 2007 with a share gain
of 100 basis points in a flat domestic market. Our branded volumes grew 5% with
Peroni and Nastro Azzurro up 7% and 8% respectively. This growth has come from
success in
the on-premise channel in the North particularly with Peroni draught and the
33cl Nastro Azzurro bottle. Both brands have leveraged national sponsorships in
sport, music and film festivals, while premiumisation has been supported by
international design
events. Growth was achieved in all channels, assisted by our own distribution,
and two price increases were successfully implemented, the latest being 8% in
January 2008. The Rome and Bari breweries are both being expanded to satisfy
ongoing export demand
and total capacity in Italy will be 6.3 million hl.

In Romania, industry volumes grew 9% supported by increased real wages and
disposable income, and our new mainstream PET offerings. Our volumes were up 28%
following capacity increases, and our share grew by 3.5% to 25.4%. Average price
increases of
5% were achieved and all brands enjoyed significant growth. Timisoreana grew
43%, extending its reach in the off-premise channel with our new PET packaging,
and secured its number one position in the market with an estimated 14% share.
The Ursus Premium
brand maintained its leadership in the premium segment, with 8% growth, and has
increased penetration in upscale on-premise outlets. All brands benefited from
better point of sale execution and a new distributor incentive scheme, with
intensive display
and tailored service packages in all channels. Current capacity expansions will
bring overall capacity to 6.8 million hl.

In Hungary, consumers have been hit hard by the fiscal austerity measures. The
beer market grew during the early summer months with the introduction of PET
offerings, but volumes were lower in the fourth quarter. In these conditions,
our volumes were
level and our share was up 140 basis points. Our focus has been on productivity
and efficiencies which have improved profitability.

In the United Kingdom, Miller Brands' volumes grew 36% in a declining market,
driven by innovative marketing and increased distribution, with Peroni Nastro
Azzurro up 39%. Performance was also supported by double digit volume growth for
both our
Polish brands, Lech and Tyskie.

In the Netherlands, our integration activities for our recent acquisition, Royal
Grolsch, have commenced.

North America

 Financial summary                             2008    2007     %

 Revenue (US$m)                               5,120   4,887     5

 EBITA* (US$m)                                  477     375    27

 EBITA margin (%)                               9.3     7.7

 Sales volumes (hl 000)
 - Lager - excluding contract brewing        48,211  46,591     3
   - contract brewing                         7,489   8,907  (16)
 - Soft drinks                                   87      84     4

 Lager - domestic sales to retailers (STRs)  45,434  43,897     4

* Before exceptional costs of US$51 million in relation to retention
arrangements entered into following the announcement of the proposed joint
venture with Coors Brewing Company and other integration costs (2007: nil).

Miller Brewing Company made progress against all of its strategic objectives,
and delivered strong earnings growth for the fiscal year from increased volumes,
an industry-leading increase in revenue per barrel of 4.0%, and effective cost
despite higher fuel and raw material input costs.

Miller continued to migrate its brand portfolio to higher margin, higher growth
segments of the market while enhancing value for distributors and retailers, and
its flagship Miller Lite brand posted volume gains with segment leading pricing.
Increased spending on core brand marketing and innovation was funded in part
from disciplined cost reduction and efficiency savings. Notably for the first
time, Miller was recognised as the number one supplier by distributors in the US
Tamarron survey.

Total US domestic beer industry shipments to wholesalers (STWs) increased 1.1%,
while total import shipments were down 2.5% for the year. Craft beers continued
their strong growth, up 12% over prior year. Against this backdrop, Miller's US

shipments to retailers (STRs) were up 3.1% when adjusted for one additional
trading day against the prior year (up 3.5% unadjusted) and grew 0.7% on an
adjusted organic basis (excluding Sparks and Steel Reserve). Miller's US
domestic sales to wholesalers
(STWs) grew 3.9% on an unadjusted basis, and were up 1.5% on an organic basis.
International shipments fell slightly.

Miller Lite STRs increased by 1.1% (1.5% unadjusted) following a return to its
intrinsic brand marketing platform.  Miller High Life sales increased 1.1% (1.5%
unadjusted) on the strength of its successful 'Take Back the High Life'
campaign, which
helped reverse a three-year decline in the franchise.  Miller Genuine Draft
declined by 10.6% adjusted (10.2% unadjusted) for the year in a declining
segment.  Milwaukee's Best continued to experience declines in the economy
sector, while Icehouse and
Mickey's volumes grew, helping to offset partially the declines of both MGD and
Milwaukee's Best.

The national launch of Miller Chill exceeded expectations with the brand selling
approximately 500,000 barrels during the year, and Miller's worthmore portfolio
overall grew by nearly 50%.  Sparks, Peroni and Leinenkugel's delivered strong
full year
double digit growth. To capture the continuing growth and consumer shift towards
light beers, Miller test marketed new light beer brands Miller Genuine Draft 64
(MGD 64) and Miller Lite Brewers Collection, which, following a positive
reaction, will be
rolled out nationally in the next year.

In line with its chain sales strategy, Miller strengthened its capabilities and
enjoyed a 4.6% increase in chain sales volume.  The success of its 'model
market' operations - an area autonomous management framework - in Texas and
contributed to share growth in Texas and share stabilisation in the Southeast.

Total revenue grew 4.8% to US$5,120 million, while domestic revenue was up 7.4%
to US$4,578 million. Contract brewing revenue declined 15.8% due in part to the
purchase of Sparks and Steel Reserve from McKenzie River in 2006 (which were
brewed under contract). Domestic revenue per barrel increased 4.0% due to price
increases of 2.4% for the year complemented by the mix benefits from the
successful growth of the worthmore portfolio, including Miller Chill.

Through continued brewing efficiencies and cost savings derived from successful
projects, the company was able largely to offset commodity cost increases,
resulting in an increase in domestic cost of goods sold per barrel of low single
Marketing spending increased upper single digits.

EBITA for the period increased 27% to US$477 million driven primarily by the
strong pricing, increased volume, effective management of fixed costs, and
includes a non-recurring gain of US$33 million from the October 2007 settlement
of a dispute with
the Ball Metal Beverage Container Corporation. This resulted in a one-time
payment to Miller of some US$70 million, a portion of which is attributable to
our contract brewing partners. The gain includes an amount of US$16 million
relating to materials
supplied to Miller during the prior year and US$17 million for other
non-recurring contractual matters.

In preparation for the proposed joint venture with Coors Brewing Company, which
remains subject to regulatory clearance, a charge of US$51 million has been
recorded by Miller for staff retention arrangements and certain integration
costs, and this has
been treated as an exceptional item. The group expects to record further charges
up to completion of the transaction which is not anticipated to occur before the
middle of calendar year 2008. These amounts were included in the previously
estimates of costs associated with the proposed joint venture.

Africa and Asia

 Financial summary                                       2008    2007     %

 Group revenue (including share of associates) (US$m)   3,367   2,674   26

 EBITA (US$m)                                             568     467   22

 EBITA margin (%)                                        16.9    17.5

 Sales volumes (hl 000)*
 - Lager                                               83,998  68,067    23
 - Lager organic                                       77,976  68,067    15
 - Soft drinks                                          6,977  13,680  (49)
 - Soft drinks organic                                  6,977   6,301    11
 - Other alcoholic beverages                            6,022   6,252   (4)

* Castel volumes of 17,845 hl 000 (2007: 15,407 hl 000) lager, 13,480 hl 000
(2007: 12,744 hl 000) soft drinks are not included.  In China, the non-core
water business was disposed of in May 2007, impacting total soft drink volumes.

The strong growth in Africa and Asia continued, with lager volume growth of 23%
(organic growth of 15%) and reported EBITA growth of 22% (organic constant
currency growth of 16%). EBITA margin decreased from 17.5% to 16.9% as a result
of the faster
growth in the lower margin Asia markets, notwithstanding an increase in Africa


Lager volumes for Africa, excluding Zimbabwe, grew 12% (organic growth of 6%)
for the year as did total volumes, benefiting from continued economic growth in
all countries, rising disposable incomes, and ongoing brand renovation.

Tanzania posted lager volume growth of 8% in a competitive market and our brand
portfolio, sales force and route-to-market have been strengthened to capture
further growth. Growth has been led by Ndovu lager following its re-formulation
as a full malt
beer. Eagle, our sorghum based lager, was launched in the North East with early
success and positive consumer response.  Rising input costs were mitigated by
improved operating efficiencies and a stable local currency. We have commenced
construction of a
new 0.5 million hl brewery in the Southern region.

Mozambique enjoyed its fourth consecutive year of strong growth, with lager
volumes advancing 8%.  The brand portfolio is well balanced and differentiated
and affordable draught beer continues to deliver ahead of expectation by
reaching new consumers.
Major capacity enhancements at both the Maputo and Beira breweries were
completed, with operating efficiencies improving, and further depots were opened
during the year. Construction of the new road infrastructure along the Zambezi
River will yield
further growth opportunities in the North and as a result we have started
building a 0.5 million hl brewery in Nampula.

Botswana grew strongly after two disappointing years, with overall growth of 15%
in aggregate volumes of lager and soft drinks. Key to this result was the
successful renovation of St. Louis lager, the market leader, and the
introduction of a new 750ml
returnable bottle. The returnable bottle has delivered ahead of expectation in
this predominantly one way pack market, and offers the consumer better value for

Uganda's lager volumes grew 4% after three prior years of exceptional growth. 
After excellent growth in recent years, volumes of our sorghum-based Eagle brand
declined following an excise increase, while our mainstream lager brands Nile
Special and
Club grew in mid double digits. The market continues to grow and has nearly
doubled in the last four years, driven by the success of our portfolio

Angola's economy continues to grow strongly at approximately 20% per annum. The
infrastructure, however, is unable to support the increasing demands for goods
and services and our total volume growth of just under 10% was constrained by
both the lack
of infrastructure and limited capacity. Total volumes for lager and soft drinks
for the year were almost 3.5 million hl, including lager volumes of the recently
privatised Empresa De Cervejas N'gola in which we invested at the end of last
year.  We
continued to expand our lager and soft drinks capacity, supported by new local
manufacture of glass and cans by global suppliers.

In the premium segment, we have launched Peroni Nastro Azzurro in five African
markets with good initial results and plan to roll out the brand to other
countries in due course. Grolsch will be launched in certain key markets.

Traditional sorghum-based beer (excluding Zimbabwe) returned to growth this
year, with excellent results from both Malawi and Botswana. The category
continues to play an important part in our African portfolio and is less
vulnerable than lager to
international commodity cost increases given the extensive use of local raw

Castel enjoyed another strong year with total volumes up 11% - lager 16% and
soft drinks 6%.  Ethiopia and Angola continued to provide above average growth
for the group, while further growth was captured in its key markets of Cameroon,
Gabon and
Morocco. The growth in Angola is linked to underlying economic prosperity, while
in Ethiopia the growth has come largely from market place activities including
portfolio segmentation and pack innovations. Cameroon volumes advanced in double
digits in a
competitive market. While underlying EBITA growth was strong, the strength of
the Euro further assisted reported performance in US dollars.

EBITA margin for our Africa business advanced despite the impact of rising
commodity costs. These impacts on the business are limited due to significant
volume growth in soft drinks, and our sorghum beer, which is more dependent on
local supply.


In China, our associate CR Snow continued to outperform the industry with full
year lager volume growth of 25%, representing organic growth of 15%, and full
year market share improving to 18%. Momentum for the first half (where CR Snow's
organic lager
volume growth of 30% was well above the industry and peer group) slowed in the
second half due to the combined effect of a severe winter, reduced discretionary
spend and price increases in this period. The Snow brand is now China's largest
lager brand and
it enjoyed exceptional growth again this year at 63%.

EBITA grew but increases in commodity prices and the acquisition of a number of
breweries, which typically depresses profits in the initial years, reduced
margins. Capacity was further increased with the construction of greenfield
breweries and
upgrades to existing plants. The non-core water business was disposed of in May
2007 impacting total soft drink volumes.

India grew strongly with lager volume growth of 23% (organic increase of 19%)
following strong growth in the prior year. Total volumes of 4.4 million hl were
achieved, with national market share gain of 1% despite having no meaningful
presence in the
key Southern state of Tamil Nadu. The Foster's business has been fully
integrated and the brand led our growth as it was rolled out more widely. The
strong beer segment continues to grow ahead of mild beer, with our brands
continuing to do well.

Our new Asia joint ventures are building momentum, with Australia ahead of
expectation due to strong performances from Peroni Nastro Azzurro, MGD and the
recent successful launch of Miller Chill.  We recently announced our intention
to build a
greenfield brewery in New South Wales and we are integrating the recently
acquired Bluetongue brewery. In Vietnam, volumes are improving with the addition
of Redd's to the portfolio, and we have commissioned a can line to expand our
pack range.

South Africa: Beverages

 Financial summary                                       2008    2007    %

 Group revenue (including share of associates) (US$m)   4,446   4,274    4

 EBITA (US$m)                                           1,026   1,102  (7)

 EBITA margin (%)                                        23.1    25.8

 Sales volumes (hl 000)
 - Lager                                               26,526  26,543    -
 - Soft drinks                                         16,657  15,986    4

Economic growth in South Africa slowed in the second half of the year as the
effects of higher fuel and food costs as well as increased levels of household
debt in a higher interest rate environment slowed consumer spending. Gross
domestic product
growth for calendar year 2007 of 3.9% was down on the 5% growth rate for 2006.

Volume performance was satisfactory with lager volumes in line with those of the
prior year, notwithstanding the loss of our licence for the Amstel brand in
March 2007 (9% of volumes in the year to March 2007). Soft drinks were 4% up
despite cycling
tough comparatives in the prior year when volumes grew by 7% and the carbon
dioxide shortages experienced in the country over the fourth quarter of this
year, and despite a decline in volumes in the lower margin alternative beverage
category, primarily
due to the discontinuation of the Bibo fruit cordial and Milo brands.

Volumes grew in both the mainstream lager and flavoured alcoholic beverage (FAB)
categories. Robust growth in Hansa Pilsener and Castle Milk Stout underpinned
mid single digit growth in the mainstream category and strong growth across the
Brutal Fruit
range contributed to the double digit increase in FAB volumes. In the premium
segment, we successfully launched our new brand, Hansa Marzen Gold, Castle Lite
grew strongly and Peroni Nastro Azzurro volumes more than doubled, but this did
not fully offset
the anticipated loss of premium volumes as the competing product re-entered the

Revenue grew by 6% on a constant currency basis. Price increases were at a level
somewhat below inflation for both lager and soft drinks, and revenue growth was
constrained by adverse mix effects in lager, driven by the swing out of higher
premium brands into mainstream.

Higher raw material input costs in the beer business placed margins under
pressure. Increasing international commodity prices led to a large increase in
key brewing raw materials, and packaging costs rose on the back of higher energy
and oil prices.
Glass costs were also up significantly following the importation of glass in the
current year at a premium to local supply, due to capacity constraints at local
glass manufacturers.

Distribution costs rose by over 30% in the current year.  Higher international
crude oil prices together with the depreciation of the rand drove South African
diesel costs up by some 47% in the year to March 2008. This was exacerbated by
distribution costs associated with servicing the 16% increase in main market
outlets (totalling 23,400 outlets in the full year) which is in line with our
direct distribution initiative.

EBITA on a constant currency basis for the year was 6% lower than the prior
year, driven primarily by higher raw material input and distribution cost
increases. In addition, the EBITA impact of the loss of the Amstel licence is
estimated at
approximately US$50 million for the year driven by adverse mix, incremental
investments in marketing and new products and packaging development. This is
after taking account of the competitor product having only re-entered the South
African market after
the first quarter of the financial year. EBITA benefited from some foreign
currency gains on contracts related to procurement. Overall EBITA margin
decreased by 270 basis points to 23.1%.

Good progress was made on the phased replacement of the 750ml returnable bottle
population for our mainstream brands and by March 2008 all but two of our
breweries were producing product in the new bottle. The market has reacted
positively to the
modernised new bottle, contributing to a resurgence in growth of the mainstream
category. This renovation programme is scheduled to be complete by September
2008. The phased introduction of 430 million new bottles has added complexity to
the supply grid
which has resulted in increased transport expenditure.

There were a number of new product launches and pack renovations in the year.
The May 2007 launch of Hansa Marzen Gold proved to be very successful and
contributed over 23% of total premium sales in the year. Innovation in the FAB
category saw two new
brands being launched in the last quarter of the financial year. Sarita Ruby, a
dry, red, apple-flavoured FAB and Skelter's Straight, a citrus flavoured
offering, were launched in February 2008 and March 2008 respectively. Both the
Hansa Pilsener and
Castle brands received label redesigns in the year to coincide with the
introduction of the new 750ml returnable bottle. In the premium segment, the
Peroni Nastro Azzurro range was extended to include draught, 330ml cans and a
new 660ml returnable bulk

Despite the slow progress by local authorities in the granting of retail liquor
licences, our Mahlasedi taverner programme trained some 3,400 taverners during
the year, bringing the total number to date to over 13,400. This is in line with
commitment to invest US$14 million in this initiative over five years.
Administrative delays at local government level continue to hamper the progress
of liquor licensing across the country.

The Department of Trade and Industry issued final Broad Based Black Economic
Empowerment (BBBEE) Codes of Good Practice in early February 2007. The liquor
industry's formulation of a Sector Code had been suspended pending the
publication of the BBBEE
Codes, but resumed in mid 2007 with the active involvement of the Department of
Trade and Industry (DTI). The DTI has required that the industry involve a very
broad group of stakeholders in the process. It is anticipated that the Sector
Code will be
finalised towards the end of calendar year 2008.

Appletiser continued to show strong volume growth of 18%, arising mainly from
its international markets

Distell's results benefited from improvements in both domestic and international
volumes. Domestic sales volume increases have been driven by cider brands and
the ready-to-drink categories, despite shortages in the supply of packaging
materials and
carbon dioxide. Margins were also improved through operating efficiencies.

South Africa: Hotels and Gaming

 Financial summary                           2008    2007    %

 Revenue (share of associate) (US$m)           396     340  16

 EBITA (US$m)                                  141     100  41

 EBITA margin (%)                             35.6    29.3

 Revenue per available room (Revpar) - US$  $76.10  $62.21

SABMiller is a 49% shareholder in the Tsogo Sun group.  The financial
performance of Tsogo Sun continues to be strong. The gaming industry in South
Africa has grown steadily, with real growth in casino win being experienced by
all participants.
However, economic circumstances in recent months indicate a slowdown in

The South African hotel industry has again enjoyed strong Revpar growth as a
result of a robust local economy and growth in international arrivals. 
Increased demand coupled with limited capacity growth, has assisted Tsogo Sun in
achieving a year on
year increase in Revpar of 24% in constant currency.

The improved level of trading, assisted by control of costs, resulted in strong
growth in EBITA and margins.

Financial review

New accounting standards and restatements
The accounting policies followed are the same as those published within the
Annual Report and Accounts for the year ended 31 March 2007 amended for the
changes set out in note 1, which had no impact on group results.  The Annual
Report and Accounts
are available on the company's website,

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
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 to
shareholders 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.

Disclosure of 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, but 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 investments and the last twelve months' results of disposals.
Constant currency results have been determined by translating the local currency
denominated results for the year ended 31 March 2008 at the exchange rates for
the comparable
period in the prior year.

Acquisitions and disposals
In December 2007, SABMiller plc and Molson Coors Brewing Company announced that
they had signed a definitive transaction agreement 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 in the increasingly  competitive US
marketplace. Closing of the transaction is subject to obtaining clearances from
the US competition authorities and certain regulatory clearances and third party
consents, as
required, and is not expected before the middle of calendar year 2008.

In January 2008 the group completed the acquisition of 99.96% of Browar Belgia
Sp. z.o.o., the fourth largest brewer in Poland.

In February 2008, the group completed the acquisition of 100% of Royal Grolsch
NV in the Netherlands.

In May 2008, SABMiller announced it had agreed to acquire a 99.84% interest in
the Ukrainian brewer, CJSC Sarmat. The transaction is subject to approval by the
Ukrainian competition authorities and other customary pre-closing conditions.

During the first half, the group completed the disposals of its soft drinks
business in Costa Rica and the juice business in Colombia. 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 to the financial statements.

Net exceptional charges of US$112 million were reported during the year (2007:
US$93 million). Of these, US$78 million relate to final restructuring costs
incurred in Latin America (2007: US$69 million), partially offset by a net
profit of US$17
million on the disposal of soft drinks businesses in Costa Rica and Colombia.
Miller has also recorded costs of US$51 million in relation to retention
accruals pending the completion of the MillerCoors joint venture and certain
integration costs. In 2007,
Europe reported a net exceptional cost of US$24 million. This comprises a profit
on the disposal of land in Naples of US$14 million less integration costs of
US$7 million principally incurred in Slovakia, and an adjustment to goodwill at
Birra Peroni. As
required under IFRS, to the extent that a business is able to utilise, after an
acquisition, previously unrecognised deferred tax assets, an adjustment to
goodwill is required with a compensating adjustment to tax. During 2007 we
recorded such an
adjustment for US$31 million in respect of Birra Peroni and this had been
included within exceptional items.

Borrowings and net debt
Gross debt at 31 March 2008, comprising borrowings 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$9,733 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$9,060 million from US$6,877 million at 31 March 2007 reflecting
payment from the acquisition of Royal Grolsch (US$1,182 million) and the
assumption of its
borrowings (US$162 million) and the group's increased capital expenditure
programme.  An analysis of net debt is provided in note 10.  The group's gearing
(presented as a ratio of debt/equity) has increased to 49.7% from 45.8% at 31
March 2007.  The
weighted average interest rate for the gross debt portfolio at 31 March 2008 was
7.3% (2007: 7.6%).

In July 2007, the group's South African holding company for its South African
operations raised R1,600 million (approximately US$230 million) in 5-year notes.
The notes, issued under a Domestic Medium Term Note programme, are guaranteed by
plc and are listed on BESA, the South African Bond Exchange. The net proceeds
have been used to repay part of the existing loan facilities of The South
African Breweries Ltd.

Finance costs
Net finance costs increased to US$456 million, a 7% increase on the prior year's
US$428 million. Finance costs in the current year include a net benefit from the
mark to market adjustments of various derivatives amounting to US$35 million
(2007: nil)
which are of a capital nature and for which the group has been unable to obtain
hedge accounting. This benefit has been excluded from the determination of
adjusted earnings per share. Adjusted net finance costs were US$491 million, up
15%, reflecting an
increase in net debt following the significant capital expenditure programme
currently being undertaken by the group and the recent Grolsch acquisition. 
Interest cover, based on pre-exceptional profit before interest and tax and
excluding the impact of
the mark to market movements noted above, has increased to 7.9 times from 7.8
times in the prior year.

Profit before tax
Adjusted profit before tax of US$3,639 million increased by 15% reflecting
performance improvements across the businesses and translation of results into
US dollars. On a statutory basis, profit before tax of US$3,264 million was up
16% on prior year
including the impact of exceptional items and the mark to market movements in
finance costs as noted above.

The effective tax rate of 32.5% (2007: 34.5%) before amortisation of intangible
assets (other than software) and exceptional items and the adjustment to
interest noted above, is below that of the prior year, principally reflecting a
more favourable
geographic mix of profits across the group, local statutory rate reductions and
ongoing initiatives to manage our effective tax rate.

Earnings per share
The group presents adjusted basic earnings per share to exclude the impact of
amortisation of intangible assets (other than software) and other non-recurring
items, which include post-tax exceptional items, in order to present a more
comparison for the years shown in the consolidated financial statements.
Adjusted basic earnings per share of 143.1 US cents were up 19% on the prior
year, reflecting the improved performance noted above.  An analysis of earnings
per share is shown in
note 6 to the financial statements and, on a statutory basis, basic earnings per
share is up 22%.

Goodwill and intangible assets
Additional goodwill has arisen primarily on the acquisition of Royal Grolsch NV
and the increase is also due to foreign exchange movements on goodwill balances
recognised in the local currency of the relevant operations.

Capital expenditure
The group has continued to invest in the business, and capital expenditure for
the year has grown to some US$1,978 million (2007: US$1,191 million) including
additional production capacity, new containers and distribution to enable the
business to
take advantage of the growth in its markets. Capital expenditure as reflected in
US dollars has also been increased by the strengthening of certain currencies in
key markets against the US dollar. Capital expenditure including the
capitalisation of
intangible software costs is US$2,034 million (2007: US$1,244 million).

Cash flow
Net cash generated from operating activities before working capital movements
(EBITDA) increased by 12% to US$4,518 million compared to the prior year. The
ratio of EBITDA to revenue is 21% (2007: 22%). Net cash generated from
operations, after
working capital movements, of US$4,276 million is up 6% reflecting an increase
in working capital across the group as at 31 March 2008, due principally to the
timing of Easter within the financial year.

Currencies: South African rand/Colombian peso
The rand has declined against the US dollar during the year and ended the
financial year at R8.15 to the US dollar, while the weighted average rand/dollar
rate weakened by 1% to R7.13 compared with R7.06 in the prior year. The
Colombian peso (COP)
strengthened by almost 17% against the US dollar compared to the prior year and
ended the financial year at COP1,822 to the US dollar, while the weighted
average COP/dollar rate improved by 15% to COP1,997 from COP2,340 .

The board has proposed a final dividend of 42 US cents per share for the year.
Shareholders will be asked to approve this recommendation at the annual general
meeting, which will be held on Thursday, 31 July 2008. If approved, the dividend
will be
payable on Thursday, 7 August 2008 to shareholders registered on the London and
Johannesburg registers on Friday, 11 July 2008. The ex-dividend trading dates
will be Wednesday, 9 July 2008 on the London Stock Exchange (LSE) and Monday, 7
July 2008 on the
JSE Limited (JSE). 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.

The rate of exchange applicable on Thursday, 26 June 2008 will be used for US
dollar conversion into South African rand and the rate of exchange on Monday, 28
July 2008 will be used for US dollar conversion into sterling. Currency
announcements will be made on the JSE's Securities Exchange News Service and on
the LSE's Regulatory News Service, indicating the rates of exchange to be
applied, on Friday, 27 June 2008 and on Tuesday, 29 July 2008, respectively.

From the commencement of trade on Friday, 27 June 2008 until the close of
business on Friday, 11 July 2008, no transfers between the London and
Johannesburg registers will be permitted, and from the close of business on
Friday, 4 July 2008 until the
close of business on Friday, 11 July 2008, no shares may be dematerialised or

Annual report and accounts

The group's unaudited condensed financial statements and certain significant
explanatory notes follow. The annual report will be mailed to shareholders in
early July 2008 and the annual general meeting of the company will be held at
Intercontinental Park Lane Hotel in London at 11:00 on Thursday, 31 July 2008.

 SABMiller plc
 for the year ended 31 March

                                                            2008          2007
                                                       Unaudited       Audited
                                              Notes         US$m          US$m

 Revenue                                        2         21,410        18,620

 Net operating expenses                                 (17,962)      (15,593)

 Operating profit                               2          3,448         3,027
 Operating profit before exceptional items                 3,560         3,120
 Exceptional items                              3          (112)          (93)

 Net finance costs                              4          (456)         (428)
 Interest payable and similar charges                      (721)         (668)
 Interest receivable                                         265           240

 Share of post-tax results of associates                     272           205

 Profit before taxation                                    3,264         2,804
 Taxation                                       5          (976)         (921)

 Profit for the financial period                           2,288         1,883

 Profit attributable to minority interests                   265           234
 Profit attributable to equity shareholders                2,023         1,649
                                                           2,288         1,883

 Basic earnings per share (US cents)            6          134.9         110.2
 Diluted earnings per share (US cents)          6          134.2         109.5

All operations are continuing.

 SABMiller plc
 at 31 March

                                                              2008          2007
                                                         Unaudited       Audited
                                                  Notes       US$m          US$m

 Non-current assets
 Goodwill                                           8       15,600        13,250
 Intangible assets                                  8        4,383         3,901
 Property, plant and equipment                               9,037         6,750
 Investments in associates                                   1,826         1,351
 Available for sale investments                                 52            52
 Derivative financial instruments                              208            34
 Trade and other receivables                                   240           181
 Deferred tax assets                                           340           164
                                                            31,686        25,683
 Current assets
 Inventories                                                 1,350           928
 Trade and other receivables                                 1,871         1,471
 Current tax assets                                            188           103
 Derivative financial instruments                               45             6
 Cash and cash equivalents                         10          673           481
                                                             4,127         2,989
 Disposal groups held for sale                                   -            64
                                                             4,127         3,053
 Total assets                                               35,813        28,736

 Current liabilities
 Derivative financial instruments                             (34)           (5)
 Borrowings                                        10      (2,062)       (1,711)
 Trade and other payables                                  (3,273)       (2,746)
 Current tax liabilities                                     (534)         (429)
 Provisions                                                  (300)         (266)
                                                           (6,203)       (5,517)
 Liabilities directly associated with disposal                   -          (19)
 groups held for sale
                                                           (6,203)       (5,176)

 Non-current liabilities
 Derivative financial instruments                            (497)         (204)
 Borrowings                                        10      (7,596)       (5,520)
 Trade and other payables                                    (338)         (269)
 Deferred tax liabilities                                  (1,775)       (1,393)
 Provisions                                                (1,160)       (1,173)
                                                          (11,366)       (8,559)

 Total liabilities                                        (17,569)      (13,735)

 Net assets                                                 18,244        15,001

 Total shareholders' equity                                 17,545        14,406
 Minority interests                                            699           595
 Total equity                                               18,244        15,001

 SABMiller plc
 for the year ended 31 March

                                                               2008         2007
                                                          Unaudited      Audited
                                                 Notes         US$m         US$m

 Cash flows from operating activities
 Cash generated from operations                    9          4,276        4,018
 Interest received                                              228          231
 Interest paid                                                (730)        (719)
 Tax paid                                                     (969)        (801)

 Net cash from operating activities                           2,805        2,729

 Cash flows from investing activities
 Purchase of property, plant and equipment                  (1,978)      (1,191)
 Proceeds from sale of property, plant and                      110          110
 Purchase of intangible assets                                 (59)        (270)
 Purchase of investments                                          -          (3)
 Proceeds from sale of investments                                5            1
 Proceeds from sale of associates                                 2           81
 Proceeds on disposal of shares in subsidiaries                  71            7
 Acquisition of subsidiaries (net of cash                   (1,284)        (131)
 Purchase of shares from minorities                            (49)        (200)
 Purchase of shares in associates                             (179)        (186)
 Dividends received from associates                              91          102
 Dividends received from other investments                        1            1
 Net cash used in investing activities                      (3,269)      (1,679)

 Cash flows from financing activities
 Proceeds from the issue of shares                               39           38
 Purchase of own shares for share trusts                       (33)         (30)
 Proceeds from borrowings                                     6,492        5,126
 Repayment of borrowings                                    (5,038)      (5,663)
 Net repayments of capital element of finance                   (7)          (7)
 Increase in loan participation deposit                           -          200
 Net cash (payments) / receipts on net                         (16)           42
 investment hedges
 Dividends paid to shareholders of the parent                 (769)        (681)
 Dividends paid to minority interests                         (197)        (161)
 Net cash generated / (used) in financing                       471      (1,136)

 Net cash from operating, investing and                           7         (86)
 financing activities
 Effects of exchange rate changes                             (113)         (18)
 Net decrease in cash and cash equivalents                    (106)        (104)

 Cash and cash equivalents at 1 April                           294         398
 Cash and cash equivalents at 31 March            10            188          294

 SABMiller plc
 for the year ended 31 March

                                                               2008         2007
                                                          Unaudited      Audited
                                                               US$m         US$m

 Currency translation differences on foreign                  2,029          362
 currency net investments
 Actuarial gains / (losses) on defined benefit plans             31          (5)
 Fair value moves on available for sale investments               2            7
 Tax on items taken directly to equity                          (8)            2
 Net investment and cash flow hedges                          (225)          (2)
 Net gains recognised directly in equity                      1,829          364

 Profit for the year                                          2,288        1,883

 Total recognised income for the year                         4,117        2,247
 - attributable to equity shareholders                        3,795        2,010
 - attributable to minority interests                           322          237

 SABMiller plc

1. Basis of preparation

The preliminary announcement for the year ended 31 March 2008 has been prepared
in accordance with the International Accounting Standards and International
Financial Reporting Standards (collectively IFRS) and International Financial
Interpretation Committee (IFRIC) interpretations as adopted by the EU.

The financial information in this preliminary announcement is not audited and
does not constitute statutory accounts within the meaning of s240 of

Share price data provided by vwd group & financial data provided byMorningstar.