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SABMiller PLC SAB Half Yearly Report

  SABMiller PLC (SAB) - Half Yearly Report

RNS Number : 7461R
SABMiller PLC
22 November 2012







Interim Announcement



Release date: 22 November 2012



                     STRONG REVENUE AND EARNINGS GROWTH

                                      

SABMiller plc,  one  of  the  world's  leading  brewers  with  operations  and 
distribution agreements across six continents, reports its interim (unaudited)
results for the six months to 30 September 2012.



Operational Highlights

· Strong brand development and  sales capability drove broad-based  growth 
in our emerging markets.

· Organic, constant currency group revenue growth of 8% and reported group
revenue up 11%.

· Lager  volumes  rose 4%  on  an  organic basis,  while  selective  price 
increases and  positive brand  mix  drove group  revenue per  hectolitre  (hl) 
growth^1 of 3%.

· Organic, constant  currency EBITA  grew by  9%. Reported  EBITA up  17%, 
despite adverse currency movements and increased commodity costs, enhanced  by 
the inclusion of Foster's.

· EBITA  margin  improvement of  30  basis  points (bps)  on  an  organic, 
constant currency basis  with a reported  margin uplift of  100 bps driven  by 
last year's  acquisitions  and  business  combinations  and  strong  top  line 
performance.

· Foster's integration  programme progressing well,  synergy delivery  and 
capability build running ahead of schedule.

· Adjusted EPS up 14% to 118.1 US cents per share.

· Free cash flow^2 up 14% to  US$1,684 million, assisted by the timing  of 
tax cash flows.



^¹Growth is shown on an organic, constant currency basis.

²As defined in the financial definitions section. See also note 10b.



                                              6 months
                                                                  12 months
                            6months to Sept   to Sept             to March
                                                                            
                                        2012      2011                 2012

Financial highlights                    US$m      US$m  % change       US$m
                                                                            
Group revenue^a                       17,476    15,688        11     31,388 
                                                                            
Revenue^b                             11,370    10,539         8     21,760 
                                                                            
EBITA^c                                3,173     2,701        17      5,634 
                                                                            
Adjusted profit before                 2,759     2,457        12      5,062 
tax^d
                                                                            
Profit before tax^e                    2,279     2,041        12      5,603 
                                                                            
Profit attributable to                 1,590     1,382        15      4,221 
owners of the parent
                                                                            
Adjusted earnings^f                    1,875     1,633        15      3,400 
                                                                            
Adjusted earnings per                                                       
share
- US cents                             118.1     103.3        14      214.8 
- UK pence                              74.7      64.0        17      134.4 
- SA cents                             967.5     731.1        32    1,607.0 
                                                                            
Basic earnings per share               100.1      87.4        15      266.6 
(US cents)
                                                                            
Interim dividend per                    24.0      21.5        12            
share (US cents)
                                                                            
Free cash flow                         1,684     1,479        14      3,048 


a Group revenue includes the attributable share of associates' and joint
ventures' revenue of US$6,106 million (2011: US$5,149 million).

b Revenue excludes the attributable share of associates' and joint
ventures' revenue.

c 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' and joint ventures' operating profit, on a similar basis. EBITA is
used throughout this interim announcement.

d Adjusted profit before tax comprises EBITA less adjusted net finance
costs of US$391 million (2011: US$229 million) and share of associates' and
joint ventures' net finance costs of US$23 million (2011: US$15 million).

e Profit before tax includes exceptional charges of US$127 million (2011:
US$191 million). Exceptional items are explained in note 3.

f A reconciliation of adjusted earnings to the statutory measure of
profit attributable to owners of the parent is provided in note 5.
                                                                         
                                                                            
EXECUTIVE CHAIRMAN'S REVIEW                                               
                                                                            



Graham Mackay, Executive Chairman of SABMiller, said:



"Broad-based revenue  and  profit  growth  in  the  first  half  reflects  the 
continued success of our  approach to the development  of our brands,  product 
portfolios, distribution and  sales effectiveness. We  have strengthened  our 
local flagship brands, complemented by product innovation across a wide  range 
of styles and prices. Margins have risen modestly despite higher input costs,
as a result of our cost reduction and procurement initiatives supplemented  by 
a positive  contribution  from  the  acquisitions  and  business  combinations 
concluded in the second half of last year."





                                                    Organic, constant

                                      Sept Reported          currency

                               2012 EBITA   growth            growth

Segmental EBITA performance            US$m        %                 %
Latin America                           920       15                14
Europe                                  516     (10)               (5)
North America                           479        6                 6
Africa                                  355        8                19
Asia Pacific                            506      265                10
South Africa: Beverages                 426      (4)                11
South Africa: Hotels and Gaming          65      (2)                12
Corporate                              (94)        -                 -
Group                                 3,173       17                 9



Business review



The group has delivered  strong revenue and profit  growth during the  period, 
with underlying volumes, aggregate pricing and mix all trending positively and
contributing to margin development. We grew volumes and revenues across  most 
regions despite a moderation of growth in some emerging markets.  Development 
of brands, product ranges and the route to market continued across the breadth
of our  portfolio  supported by  further  improved operating  processes.  The 
acquisition of Foster's in particular has contributed significantly.



Total beverage volumes were 4% ahead of  the prior period on an organic  basis 
with lager  volumes up  4%, soft  drinks  volumes up  6% and  other  alcoholic 
beverages up 12%. This volume growth, selective price increases and  improved 
brand mix in most  regions led to  group revenue growth of  8% on an  organic, 
constant currency basis, with group  revenue per hl up  3% on the same  basis. 
Reported group revenue,  which includes  business combinations,  was up  11%. 
Currency movements had  an adverse impact  of six percentage  points on  group 
revenue growth principally due to the weakening of the South African rand  and 
Central European currencies.



EBITA  of  US$3,173   million  represented  growth   of  17%,  including   the 
contribution of Foster's and other  business combinations but also the  impact 
of currency weakness. EBITA grew by 9% on an organic, constant currency basis
reflecting a combination  of volume  growth and  rising group  revenue per  hl 
combined with some  cost savings  and efficiencies. On  an organic,  constant 
currency basis the  EBITA margin  rose 30  basis points  (bps). Raw  material 
input costs rose, as expected, by  mid-single digits (on a constant  currency, 
per hl basis)  largely as a  result of  higher cereal costs  partly offset  by 
procurement and other  savings. Fixed costs  increased with salary  inflation 
and further expenditure on  sales and systems  capabilities, partly offset  by 
on-going  cost  efficiency  initiatives.  Investment  in  brand   development 
continued, with related marketing costs rising slightly behind the increase in
revenue.  EBITA  margins  also  benefited  from  acquisitions  and   business 
combinations, particularly Foster's,  and the  reported EBITA  margin for  the 
group expanded by 100 bps to 18.2%.



Adjusted earnings  growth  of  15%  reflects  higher  EBITA,  boosted  by  the 
acquisition of Foster's, and a reduction  in the effective tax rate to  27.5%, 
partly offset by  increased finance  costs driven  by Foster's-related  debt. 
Adjusted earnings per share were up 14% to 118.1 US cents.



Despite the adverse  currency movements,  free cash flow  increased by  US$205 
million compared with the prior period, to US$1,684 million. Adjusted EBITDA,
which includes  dividends from  MillerCoors but  excludes the  cash impact  of 
exceptional items, increased  by US$342 million  (12%) with underlying  growth 
enhanced by the  contribution from Foster's.  Capital expenditure,  including 
that on intangible assets, of US$655 million was US$105 million lower than  in 
the prior period.  We have continued  to invest, particularly  in Africa,  in 
order to  address capacity  constraints and  to support  growth. New  brewing 
capacity was commissioned in South Sudan and Nigeria during the period and new
capacity in  Ghana,  Tanzania, Peru,  Uganda  and Zambia  is  currently  under 
construction. Working capital generated a  net cash outflow during the  period 
of US$219 million  driven by the  timing of payments  to creditors,  increased 
inventory value  particularly  in Africa  and  Latin America,  utilisation  of 
provisions in Australia and higher receivables in Europe due to growth in  the 
modern trade channel. Net interest paid increased by US$190 million over  the 
prior period reflecting increased debt primarily reflecting the acquisition of
Foster's, but the timing of a one  off tax cash inflow in Australia more  than 
offset this.



The group's gearing ratio as at 30 September 2012 reduced to 65.0% from  68.6% 
at 31 March 2012  (as restated). Net  debt was reduced  by US$750 million  to 
US$17,112 million. An  interim dividend of  24.0 US cents  per share, up  2.5 
cents  (12%)  from  the  prior  year's  interim  dividend,  will  be  paid  to 
shareholders on 14 December 2012.



§ In Latin America, EBITA grew by  15% (14% on a constant currency basis)  and 
EBITA margin  improved strongly,  reflecting increased  volumes and  selective 
price  increases,   combined  with   variable   production  and   other   cost 
efficiencies. Lager volumes  grew by 4%  and soft drinks  by 3%, with  volume 
improvements more modest in the  second quarter as a  result of a slowdown  in 
the pace of economic growth.  Group revenue per hl grew  by 4% on a  constant 
currency  basis.  Soft  drink   volume  improvements  benefited  from   wider 
availability and pack range extensions of our non-alcoholic malt brands.



§ In  Europe, reported  EBITA declined  by  10% (5%  on an  organic,  constant 
currency basis)  with an  EBITA  margin decline  of 170  bps  (200 bps  on  an 
organic, constant  currency  basis) driven  by  negative mix  and  higher  raw 
material costs together with increased level of marketing spend in advance  of 
peak trading.  Reported  EBITA was  impacted  by the  weakening  of  European 
currencies against the US dollar, but benefited from our alliance with Anadolu
Efes. Lager volumes improved by 9%  on an organic basis, driven by  selective 
price reductions together with growth in  the economy segment and the  benefit 
in the second  quarter from  cycling a weak  comparative period.  Performance 
continues  to  be  affected  by  the  shift  from  on-premise  to  off-premise 
consumption as  well  as growth  of  the modern  trade  channel,  particularly 
discounters. Group  revenue per  hl declined  by 2%  on an  organic,  constant 
currency basis  reflecting negative  mix and  the price  resets. We  increased 
market share in Poland, Romania and  some other countries, as we  repositioned 
our brand portfolios, launched new variants and enhanced sales execution.



§ In North  America, EBITA increased  by 6% with  strong pricing and  positive 
brand mix,  partly offset  by increased  marketing costs  and lower  volumes. 
MillerCoors' domestic sales to retailers (STRs) were down 2% on a trading  day 
adjusted basis, with sales to wholesalers (STWs) 1% lower on an organic  basis 
following a slight  build-up of  distributor stocks. The  decline in  premium 
light and economy volumes was partly  offset by double digit volume growth  in 
the Tenth and Blake craft and imports division.



§ Reported  EBITA in  Africa increased  by  8% (19%  on an  organic,  constant 
currency basis) with lager volumes  up by 6% on  an organic basis. Growth  was 
strong in most  markets, although  second quarter  growth was  reduced by  the 
effect of  a  25%  excise  increase in  Tanzania.  Subsidiary  EBITA  margins 
remained under pressure  reflecting the impact  of capacity  expansion-related 
costs, commodity  cost  pressures and  continued  building of  our  sales  and 
marketing capability. Total EBITA margin improved by 200 bps principally as  a 
result of the combination of our Angola and Nigeria businesses with Castel and
associated synergies. Other beverage categories contributed significantly  to 
total volume growth, with soft drinks 8% higher and other alcoholic  beverages 
up 12%, both on an organic basis.



§ The acquisition of Foster's and  higher profits in China and India  resulted 
in reported  EBITA in  Asia Pacific  increasing by  265% (10%  on an  organic, 
constant currency basis). Lager  volumes improved by 5%  on an organic  basis 
while reported  volumes  grew  by  17%. Our  associate  in  China,  CR  Snow, 
continued to  deliver good  growth with  volumes  up 4%  on an  organic  basis 
although the second quarter saw volume  declines in Sichuan, Anhui and  Fujian 
provinces. In India volumes increased by 23% driven by strong growth in Andhra
Pradesh, partly cycling trade restrictions in the prior period, combined  with 
double digit growth across other key states.



In Australia, lager volumes declined by 8% on a pro forma^(1) basis,  slightly 
worse than  the  market, excluding  the  impact  of the  termination  of  some 
licensed brands and  the loss of  two trading days.  Including these  impacts 
lager volumes declined by 13%. Good progress continues to be made on plans to
strengthen the  brand  portfolio  and  commercial  trading  relationships,  to 
accelerate  the   realisation  of   synergies  and   to  improve   operational 
performance.



(1) Australia pro  forma volumes  are based  on volume  information for  the 
period from 1 April 2011 to 30 September 2011 using SABMiller's definition  of 
volumes and  include 100%  of the  volumes for  Pacific Beverages,  our  joint 
venture in Australia until January 2012.



§ South Africa: Beverages' EBITA  decreased by 4% (but  increased by 11% on  a 
constant currency  basis). EBITA  margin expanded  by 10  bps benefiting  from 
price increases, operational efficiencies and fixed cost productivity,  partly 
offset by a non-recurring charge in our associate, Distell. Group revenue per
hl grew by 6% on a constant currency  basis. Lager volumes grew by 1% and  we 
continued  to  gain  market  share  in  a  challenging  economic  and  trading 
environment. Soft  drinks  volumes grew  by  8%, cycling  a  relatively  weak 
comparative period in  the prior  year and benefiting  from increased  channel 
penetration.



§ The business capability programme progressed in line with expectations, with
net operating  benefits  of  US$115  million  in  the  six  months.  The  most 
significant contributions came from Trinity (global procurement) and  European 
regional manufacturing.  The exceptional  costs of  the programme  were  US$70 
million during the half  year (2011: US$115 million).  The global IS  solution 
was deployed in Ecuador and preparations continue for the next release, due to
be initiated in Poland after the year end.



Outlook



We have recently seen moderation of economic growth in some countries, but the
potential of  the  principal emerging  markets  in which  we  operate  remains 
strong. The positive impact from  acquisitions and business combinations  seen 
in the first half will reduce as we cycle their completion in the latter  part 
of the year. Performance will continue to reflect progress in the  development 
of our brands,  product portfolios, distribution  and sales effectiveness.  We 
expect input cost  pressures to continue  at a  level similar to  that of  the 
first half of  the year,  and we will  selectively raise  prices where  market 
conditions  permit.  We  will  continue  to  invest,  in  brand  development, 
innovation, systems and capability to sustain growth, as well as to  implement 
our planned capital programmes.



Enquiries:
                           SABMiller plc                Tel: +44 20 7659
                                                        0100
Catherine May              Director of Corporate        Tel: +44 20 7927
                           Affairs                      4709
Gary Leibowitz             Senior Vice President,       Tel: +44 20 7659
                           Investor Relations           0119
Richard Farnsworth         Business Media Relations     Tel: +44 20 7659
                           Manager                      0188
A live audio webcast of a  presentation by Executive Chairman, Graham  Mackay, 
Chief Operating Officer, Alan Clark, and Chief Financial Officer, Jamie Wilson
to the investment community will begin  at 9.30am (GMT) on 22 November  2012. 
To register for the webcast, download the slide presentation, view  management 
video interviews and download photography and b-roll, visit our online Results
Centre at www.sabmiller.com/resultscentre.
To    monitor    Twitter     bulletins    throughout     the    day     follow 
www.twitter.com/sabmiller or #sabmillerresults.



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.



















Operational review



Latin America



                                                       Sept   Sept

Financial summary                                      2012   2011  %
Group revenue (including share of associates) (US$m)  3,687  3,396  9
EBITA¹ (US$m)                                           920    797 15
EBITA margin (%)                                       24.9   23.5
Sales volumes (hl 000)
- Lager                                              20,463 19,658  4
- Soft drinks                                         8,879  8,593  3



¹  In  2012  before  exceptional  charges  of  US$45  million  being  business 
capability programme  costs (2011:  US$54  million being  business  capability 
programme costs of US$42  million and integration  and restructuring costs  of 
US$12 million).



Latin  America  delivered  lager  volume  growth  of  4%  in  the  half  year, 
outperforming most  alcohol and  soft drinks  categories across  our  markets. 
There was a slowdown  in the rate  of economic growth  in the second  quarter. 
Soft drinks  volumes were  up 3%  as a  result of  increased distribution  and 
non-alcoholic malt  beverage pack  range extensions.  Volume growth,  combined 
with selective price increases, resulted in an increase in group revenue of 9%
on a reported basis. Reported EBITA increased  by 15% and EBITA margin by  140 
bps, as  product  costs benefited  from  stronger currencies  and  procurement 
savings and distribution showed further efficiency gains, which were offset by
sales and system capability costs incurred during the period.



In Colombia, lager volumes  grew by 3%, despite  selective price increases  in 
April, local trade  restrictions in some  cities and the  cycling of the  FIFA 
Under-20's World Cup  in the  prior period.  Consumer acceptance  of the  more 
affordable bulk  pack launched  in the  prior year  has been  gratifying.  Our 
mainstream portfolio continues to expand,  particularly in the light  segment, 
with Águila Light growing  at double digit rates  at upper mainstream  prices. 
Our premium and  super-premium segment  volumes showed combined  growth of  6% 
assisted by the enlarged Club Colombia franchise and increased availability of
Miller Genuine Draft (MGD). Our share  of the alcohol market increased by  110 
bps compared  with the  prior  year, with  gains  driven by  increased  fridge 
penetration and  the  narrowing of  the  affordability gap  between  beer  and 
spirits. Despite  strong  competition  and  increased  prices  in  April,  our 
non-alcoholic malt beverages volumes grew by 1%.



In Peru, lager volumes grew by 6%, with consumers continuing to trade up  from 
informal alcohol.  Trade execution  improved  as a  result of  our  commercial 
operating model roll-out and expanded trade and fridge coverage. This resulted
in a further gain of 120 bps in our lager market share. Cristal, our flagship
brand and leading  sponsor of football,  saw strong growth  in the period  and 
Cusqueña continued to grow.  Our soft drinks volumes  expanded by 26%, as  our 
non-alcoholic malt  brand, Maltin  Power, and  the water  category grew  their 
consumer base. 



In Ecuador, following  price increases  and strong growth  in the  comparative 
period, lager volumes increased by 4%.  Our share of the alcohol market  rose, 
reflecting the benefits of our continued direct service expansion and improved
outlet coverage.  Our  upper  mainstream brand,  Pilsener  Light,  doubled  in 
volume, while our  local premium  brand, Club,  delivered growth  of 19%.  Our 
non-alcoholic malt brand, Pony Malta, also benefited from wider  distribution, 
achieving double digit volume growth.



In Panama, lager volumes were up by  7%, with our premium brand, Miller  Lite, 
quadrupling its volumes and  MGD growing by  double digits, further  enhancing 
our revenue  mix.  We continue  to  lead  the premium  and  the  super-premium 
segments, while competition  remains intense  in the  mainstream segment.  The 
non-alcoholic malt  beverages  category  saw healthy  volume  growth  of  17%, 
largely driven by wider distribution,  while other soft drinks categories  saw 
softer performance.



Our business in Honduras saw growth of  1% across both lager and soft  drinks. 
Heightened security concerns have led to a structural shift toward off-premise
consumption and  a decline  in the  total alcohol  market. Nevertheless,  our 
share of the alcohol market increased by over 500 bps compared with the  prior 
period, supported by our bulk pack affordability strategy.



El Salvador delivered a strong performance, with domestic lager volume  growth 
of 12%,  driven  by the  success  of our  bulk  packs, trade  activations  and 
coverage expansion. Our premium brand, Suprema, saw volume growth of 9%, after
the  launch  of  new  packaging  late  last  year,  while  Golden  Light   was 
repositioned as an upper mainstream brand  and grew volumes by double  digits. 
Despite heightened competition, domestic soft  drinks volumes grew by 1%  over 
the prior period.







Europe



                                                       Sept   Sept

Financial summary                                      2012   2011    %
Group revenue (including share of associates) (US$m)  3,293  3,268    1
EBITA¹ (US$m)                                           516    570 (10)
EBITA margin (%)                                       15.7   17.4
Sales volumes (hl 000)
- Lager                                             27,118 25,645    6
- Lager (organic)                                   23,047 21,232    9
- Soft drinks                                        3,661     58 >100
- Soft drinks (organic)                                 48     46    4



¹ In 2012 before exceptional charges of US$35 million being business
capability programme costs (2011: US$69 million being business capability
programme costs of US$54 million and the loss on disposal of a business of
US$15 million).



In Europe, organic information excludes trading  in Russia and Ukraine in  the 
prior year comparative period  and our share of  Anadolu Efes' trading in  the 
half year,  following the  completion of  our strategic  alliance on  6  March 
2012. Our share of Anadolu Efes' results is included in reported information.
Lager volumes were  up 6% (9%  on an  organic basis) driven  by economy  brand 
growth, and  supported by  selective price  reductions, increased  promotional 
activities and  the  launch  of  various product  and  pack  innovations.  In 
addition, the second quarter benefited from cycling a weak comparative period.
Group revenue per hl decreased by 16%, (down 2% in organic, constant currency)
reflecting expansion of  economy brands  and price  reductions, together  with 
further decline of the on-premise channel, adverse currency movements and  the 
change in category mix  resulting from the inclusion  of our share of  Anadolu 
Efes' results. 



Reported EBITA was down 10% impacted  by the weakening of European  currencies 
against the US dollar but benefiting from the strategic alliance with  Anadolu 
Efes. Reported EBITA margin declined  by 170 bps. Organic, constant  currency 
EBITA was down 5% with an EBITA margin  decline of 200 bps on the same  basis, 
driven by increased raw material costs  and a higher level of marketing  spend 
to support product launches and brand activations in advance of peak  trading, 
and further  accentuated by  continuing adverse  channel, pack  and brand  mix 
effects. Market share  gains were  achieved in several  markets, most  notably 
Poland, Romania, Hungary and Slovakia as we repositioned our brand portfolios,
launched new flavoured variants and  enhanced our execution in the  on-premise 
channel.



In Poland, volumes were up 10% benefiting  from the beer market growth in  the 
first quarter, fuelled by Euro  2012 football tournament marketing  activities 
and favourable weather conditions. The second quarter benefited from cycling a
weak comparative period, but  growth was more subdued  towards the end of  the 
half year as  the consumer  environment became  increasingly challenging.  In 
addition core brands benefited from the resetting of some price points and the
launch of innovations. Mainstream brand  Tyskie gained market share  supported 
by the successful  '5^th stadium'  marketing campaign  and the  launch of  the 
variant Tyskie Klasyczne. Growth of our premium brand Lech was assisted by the
launch of Lech Shandy which helped to develop a new category with  encouraging 
results. Constant currency revenue  per hl was  down 1% as  a result of  price 
resets, and this, coupled with higher input costs and marketing spend  focused 
on the first  half of the  year to  support product launches,  resulted in  an 
EBITA decline on the same basis.



In the Czech Republic, domestic volumes  were up 2%. Revenue per hl  declined 
by 1% on a constant  currency basis as consumers  continued to shift from  the 
high value on-premise  channel to the  off-premise channel. Channel  dynamics 
particularly affected  our performance  in  the super-premium  and  mainstream 
segments as Pilsner Urquell and  Gambrinus respectively are heavily skewed  to 
the on-premise channel. The launch of a new variant resulted in strong growth
of Frisco in  the super-premium segment.  Growth in the  premium segment  was 
attributable to Kozel 11,  which benefited from  increased distribution and  a 
successful launch in PET, together  with the newly-launched Gambrinus  Radler. 
EBITA on a constant currency basis declined as operational cost  efficiencies 
were outweighed by adverse channel mix and increased raw material costs.



In Romania, volumes  grew by 25%  driven by the  national roll-out of  economy 
brand Ciucas in  a new PET  pack launched at  the end of  the prior  financial 
year. Mainstream brand Timisoreana also  performed ahead of the prior  period 
with growth in larger PET formats.  Price increases in the period were  offset 
by adverse pack and  brand mix resulting in  constant currency revenue per  hl 
declining by 5%. Despite the unfavourable mix, volume growth led to  increased 
EBITA on a constant currency basis.



Domestic lager volumes in Italy were 1% ahead of the prior period against  the 
backdrop of a challenging economic  environment and poor consumer  confidence. 
The growth was mainly  fuelled by our economy  brand Wuhrer following a  price 
repositioning.



In the Netherlands, domestic volumes were  down 1%, predominantly driven by  a 
decline in the  on-premise channel which  has been impacted  by a  challenging 
market environment with low levels of consumer confidence, together with  high 
levels of promotional pressure in the off-premise channel.



In the United  Kingdom, domestic volumes  were up 5%  driven by Peroni  Nastro 
Azzurro growth supported by continued draught expansion.



In Slovakia, a number of successful summer promotions resulted in solid growth
of Kozel, Pilsner  Urquell and Birell,  and this together  with the launch  of 
Smadny Mnich Radler, led  to aggregate volume growth  of 10%.In the  Canaries, 
lager volumes grew by 5%, despite the challenging trading environment,  driven 
by good  performance  in the  off‐premise  channel which  offset  declines  in 
performance in the tourist  areas. In Hungary, volumes  were up 7% boosted  by 
on-premise activations supporting our economy brand Kobanyai Sor.



Anadolu Efes' lager  volumes were down  5% on a  pro forma^(1) basis  compared 
with the prior period, and soft drinks volumes were up 9% on the same  basis. 
The decline in lager volumes was driven by a softer performance in Russia with
market share suffering during the  integration of SABMiller and Anadolu  Efes' 
businesses. Slower growth in Turkey, resulting from increased availability  of 
competitor products was also a factor. The increase in soft drinks volumes was
driven by strong growth in both the still and sparkling drinks categories.



^(1) Pro forma volumes are based on volume information for the period  from 
1 April 2011 to 30 September 2011 using SABMiller's definition of volumes  for 
the enlarged Anadolu Efes group as if the strategic alliance had commenced  on 
1 April 2011.







North America



                                                           Sept   Sept

Financial summary                                          2012   2011   %
Group revenue (including share of joint ventures) (US$m)  2,901  2,830   3
EBITA¹ (US$m)                                               479    452   6
EBITA margin (%)                                           16.5   16.0
Sales volumes (hl 000)
- Lager - excluding contract brewing                     22,237 22,586 (2)
- Lager - excluding contract brewing (organic)           22,218 22,586 (2)


MillerCoors' volumes
- Lager - excluding contract brewing                     21,539 21,779 (1)
- Lager - excluding contract brewing (organic)           21,520 21,779 (1)
- Sales to retailers (STRs)                              21,336 21,914 (3)
- Contract brewing                                        2,538  2,357   8



¹ In 2012 before exceptional charges of US$nil (2011: US$35 million being  the 
group's share of MillerCoors' impairment of the Sparks brand).



The North America segment  includes the group's 58%  share in MillerCoors  and 
100% of  Miller  Brewing  International and  various  North  American  holding 
companies. Total North America EBITA increased by 6%, as growth in MillerCoors
was partly  offset by  higher  marketing and  fixed  costs in  Miller  Brewing 
International.



MillerCoors

In the six months to 30 September 2012, MillerCoors' US domestic STRs declined
by 2% on a trading day adjusted basis (declined by 3% on an unadjusted basis).
Domestic  STWs  were  down  by  1%  on  an  organic  basis,  following  higher 
distributor inventory levels than in  the comparative period. EBITA  increased 
by 8%  with strong  pricing,  favourable brand  mix  and reduced  general  and 
administrative costs partly offset by the  impact of lower volumes and  higher 
marketing spend.



Premium light volumes were  down low single digits,  as growth in Coors  Light 
was offset by a low single digit  decline in Miller Lite. The Tenth and  Blake 
division  delivered   double  digit   volume  growth,   driven  primarily   by 
Leinenkugel's, including the strong success of Leinenkugel's Summer Shandy and
Blue Moon. Peroni  Nastro Azzurro  delivered strong results  growing by  high 
single digits. The economy  segment declined by mid  single digits, driven  by 
Keystone Light and  Miller High Life,  as consumers continued  to trade up  to 
other categories. The premium regular segment  was down by mid single  digits 
with a  double digit  decline in  Miller Genuine  Draft partly  offset by  low 
single digit growth in Coors Banquet. All STR volume growth rates presented in
this paragraph are on a trading day adjusted basis.



MillerCoors' revenue per hectolitre  grew by 4%, as  a result of firm  pricing 
and favourable brand mix resulting from growth in the Tenth and Blake division
and declines  in  the economy  segment.  Cost  of goods  sold  per  hectolitre 
increased by low single  digits, driven by higher  brewing material costs  and 
unfavourable pack mix  linked to  product innovation, partly  offset by  tight 
cost control and savings initiatives.



Marketing spend  increased, following  investment  behind the  Miller64  brand 
re-launch, together  with  higher  spending  on  new  products  and  packaging 
innovations, with higher  levels of  marketing investment in  Coors Light  and 
Miller Lite expected to continue.  General and administrative costs  decreased 
primarily as a result of phasing of information system costs. Our share of an
impairment charge relating to the discontinuation of Home Draft packaging  was 
also taken in the half year.







Africa



                                                      Sept  Sept

Financial summary                                     2012  2011   %
Group revenue (including share of associates) (US$m) 1,792 1,839 (3)
EBITA¹ (US$m)                                          355   327   8
EBITA margin (%)                                      19.8  17.8
Sales volumes (hl 000)
- Lager                                              8,709 8,290   5
- Lager (organic)                                    8,345 7,904   6
- Soft drinks                                        6,201 6,693 (7)
- Soft drinks (organic)                              6,098 5,642   8
- Other alcoholic beverages                          2,969 2,597  14
- Other alcoholic beverages (organic)                2,919 2,597  12



¹ In  2012 before  exceptional charges  of US$nil  (2011: US$1  million  being 
business capability programme costs).



Lager volumes in Africa grew  by 5% (6% on  an organic basis), cycling  strong 
comparatives. Robust volume growth continued in most African markets, although
overall growth in  the second  quarter was  impacted by  a significant  excise 
increase in Tanzania, as  well as a softer  economic backdrop in Uganda  which 
resulted in volume declines in these markets for the first half of the  year. 
This was more than offset by strong double digit lager volume growth in Ghana,
Mozambique, South Sudan  and Zambia.  We continue to  increase our  marketing 
investment, ensuring our  brands are  appealing to  the consumer,  as well  as 
expanding our  local  geographic footprint  to  draw new  consumers  into  the 
category through  improved availability.  Castle Lite  continued to  establish 
itself as a pan-African  premium brand with  growth of 50%  in the half  year. 
Lager volume growth was further supported by the commissioning of new capacity
in South Sudan, in our associate in  Zimbabwe and most recently in Nigeria  as 
well as broadly favourable economic  conditions across the continent.  Further 
capacity projects  are currently  under way  in Ghana,  Tanzania, Uganda,  and 
Zambia.



Our full beverage portfolio  offering continued to  deliver results with  soft 
drinks  and  other  alcoholic  beverages   volumes  growing  by  8%  and   12% 
respectively  both  on  an  organic   basis.  Soft  drinks  growth   including 
non-alcoholic malt beverages  was underpinned by  good performances in  Ghana, 
Botswana, Nigeria,  South  Sudan  and  Zambia as  well  as  our  associate  in 
Zimbabwe. Reported soft drinks volumes declined as a result of the  management 
changes relating to  the Angolan  businesses. Other  alcoholic beverages  were 
buoyed by the strong performance of our wines and spirits in Tanzania. As part
of our affordability  strategy and  to take  share from  informal alcohol,  we 
continue to expand the geographic footprint of our traditional beer  offering, 
with product  now available  in nine  markets  and the  recent launch  of  the 
innovative Chibuku Super in PET in Zambia.



Volume growth and subsidiary organic, constant currency revenue per hectolitre
growth of 8% helped deliver  strong first half EBITA growth  of 8% (19% on  an 
organic, constant  currency basis),  despite the  adverse impact  of  currency 
movements on reported  group revenue.  EBITA margin  improved by  200 bps,  to 
19.8%, principally as a result of the synergies realised from the  combination 
of our Angola  and Nigeria  businesses with Castel,  with subsidiaries'  EBITA 
margin under  pressure reflecting  the  impact of  capacity  expansion-related 
costs, commodity  cost  pressures and  continued  building of  our  sales  and 
marketing capability.



Lager volumes declined by 8% in Tanzania in the half year, as the beer  market 
was negatively affected by a 25% excise increase in July 2012. Despite  this, 
the continued strong  performance of  Castle Lite helped  the premium  segment 
remain in growth. Our wines and  spirits business continued to grow  strongly 
as we expand availability and introduce new pack offerings.



In Mozambique, lager volumes grew by 10%, underpinned by robust growth in  the 
mainstream brands  2M  and  Manica.  After  11  months  in  the  market,  the 
affordable cassava-based brand Impala continues to expand and gain  acceptance 
in the rural markets of the northern region.



Despite capacity  constraints  in  Zambia,  lager volume  growth  of  14%  was 
achieved through enhanced brewery throughput  efficiencies as well as  imports 
from South Africa, expanded rural penetration and improved availability in the
trade together with a positive economic environment. In the premium  segment, 
Castle Lite more than doubled volumes while in the mainstream segment our  key 
brands Castle Lager and  Mosi were supported  by focused marketing  activities 
which delivered double digit growth. The  construction of our new brewery  at 
Ndola remains on track to be commissioned in the third quarter. Sparkling soft
drinks and non-alcoholic  malt beverages  both delivered  strong double  digit 
volume growth.



In the  context of  a  softer economic  environment and  cycling  particularly 
strong comparatives,  Uganda lager  volumes contracted  by 3%.  Club  Pilsener 
continued to gain share in the mainstream segment. Good progress is being made
on the Mbarara brewery  in west Uganda  which is on  track to be  commissioned 
early in the next financial year and  will provide a platform for growth in  a 
market with a strong economic outlook expected in the medium term.



In Ghana, Club lager remained the  notable performer leveraging its 'Pride  in 
Origins' positioning and helped to deliver 15% lager volume growth, driven  by 
improved availability coupled  with a  buoyant economy.  Soft drinks  volumes 
also grew 11% underpinned by the  performance of the local sparkling  beverage 
portfolio.



Despite a difficult political  and economic period,  South Sudan continued  to 
deliver strong double digit lager and  soft drinks volume growth, assisted  by 
new capacity commissioned at the end of the first quarter. Delta  Corporation, 
our  associate  in  Zimbabwe,  grew  lager  volumes  by  9%  organically  with 
particularly strong growth from the premium lager, Golden Pilsener,  supported 
by focused marketing initiatives and pack innovations. The Onitsha brewery  in 
Nigeria was commissioned recently and the launch of our mainstream brand  Hero 
in September was well received.



Our associate Castel delivered pro forma^(1) half year lager volume growth  of 
5% with good volume performances in  Cameroon and the Ivory Coast and  further 
solidified their leadership  position in Ethiopia.  Pro forma^(1) soft  drinks 
volumes grew by  6%. The  Angola integration project  is delivering  synergies 
ahead of expectation.



^(1) Pro forma volumes  are based on volume  information for the  period 
from 1 April  2011 to  30 September  2011 for the  Castel business  as if  the 
management combinations in Angola  and Nigeria and  the Castel acquisition  in 
Madagascar had occurred on 1 April 2011.







Asia Pacific



                                                               Sept   Sept

Financial summary                                              2012   2011   %
Group revenue (including share of associates and joint        3,040  1,439 111
ventures)  (US$m)
EBITA¹ (US$m)                                                   506    138 265
EBITA margin (%)                                               16.7    9.6
Sales volumes (hl 000)
- Lager                                                      41,473 35,448  17
- Lager (organic)                                            37,158 35,377   5



¹ In 2012 before  exceptional charges of US$47  million being integration  and 
restructuring costs (2011: US$nil).



Lager volumes in Asia Pacific grew by  5% on an organic basis, while  reported 
volumes  were  up  17%  reflecting  the  acquisition  of  Foster's  and  other 
acquisitions in China.  Reported EBITA increased  threefold and group  revenue 
per hl grew by 80% primarily due to the inclusion of Foster's. On an  organic, 
constant currency  basis EBITA  increased  by 10%  and  group revenue  per  hl 
improved by 6%. EBITA margin increased by  710 bps on a reported basis  (level 
on an organic, constant currency basis).



In China, lager volumes grew by 6%  (4% on an organic basis) and market  share 
grew. Volume  growth ahead  of  overall beer  market  growth was  achieved  in 
Liaoning, Jiangsu, Guangdong, Guizhou, Gansu and Shandong with share  declines 
in Sichuan, Anhui and Fujian provinces.



Group revenue per hl increased by 2% despite the adverse impact of  provincial 
mix. High single digit  increases were achieved in  certain provinces and  the 
national trend continues to  be positive, reflecting continued  premiumisation 
of the brand portfolio led by growth  in Snow Draft. EBITA increased by 7%  on 
an organic, constant currency basis, although EBITA margin decreased slightly,
reflecting continued sales and marketing  investment to support volume  growth 
in an increasingly  competitive environment  as well as  adverse movements  in 
commodity and operating costs.



In India, volumes  grew by  23%. Continued  strong growth  in Andhra  Pradesh, 
cycling trading restrictions in  the state through to  the end of August,  was 
assisted by double digit  growth achieved in the  important states of  Punjab, 
Maharashtra, Rajasthan, Orissa, West Bengal and Uttar Pradesh. Growth was more
muted in the  other key  states of Karnataka  and Haryana  with slower  market 
growth compared with the prior period.



Revenue per hl increased by 6%  on a constant currency basis reflecting  price 
increases in certain  states and a  continued focus on  higher margin  states, 
brands and packs. Marketing investment continued to increase in support of the
brand portfolio and  the business continued  to focus on  cost initiatives  to 
offset commodity and  other inflationary  cost pressures. As  a result,  EBITA 
grew strongly,  driven by  our differentiated  state by  state strategy,  with 
EBITA margin ahead of the prior period.



In Australia, lager volumes were down  13% on a pro forma^(1) basis  including 
the impact of  two fewer  trading days and  the termination  of some  licensed 
brands from our portfolio.  After adjusting for  these impacts, lager  volumes 
declined by 8%, slightly worse than the  market and before the effects of  our 
management actions, with a  backdrop of consumer  confidence which remains  at 
subdued levels. While  our share  of draught  remained firm,  a reduction  in 
off-premise share reflected  more constrained customer  programmes during  the 
first half of the year and our focus on revenue optimisation.



The mainstream  classic  beer segment  continued  to underperform  the  market 
although the recently  announced restoration of  the flagship Victoria  Bitter 
brand back to its  full flavour, full strength  position, has been  favourably 
received, and is  expected to strengthen  our position in  this segment.  The 
Carlton brand  franchise continued  to consolidate  its leading  market  share 
position, with  strong momentum  in Carlton  Dry in  particular. The  recently 
launched Great Northern Brewing Co brand also continued to perform strongly.



Premium volumes performed well with growth in our global premium brands, cider
and craft segments.  In particular, global  premium draught volumes  performed 
strongly driven by  Peroni Nastro  Azzurro, up more  than 100%  in the  second 
quarter of the year compared with the prior period.



Revenue per hl increased by 3.5% for the six months on a pro forma  continuing 
basis^(2) reflecting our focus on driving profitable revenue growth. This  has 
delivered greater  value both  for our  customers and  ourselves.  Initiatives 
including accelerated  synergy  delivery,  tighter  cost  control  and  supply 
optimisation have all contributed towards the  growth of EBITA on a pro  forma 
continuing basis^(2).



We  remain  focused  on  delivering  sustainable  profitable  growth   through 
systematically building capability and investing in key areas of the business.
These include  investing  in  and renovating  the  core  portfolio,  improving 
revenue management capability and execution,  and seeking out premium  revenue 
growth opportunities. We are targeting  to improve in-store execution  through 
partnering with key customers, restructuring and refocusing the sales force.



The integration  programme  is progressing  well,  with synergy  delivery  and 
capability build running ahead of schedule. The sale of Foster's interests  in 
its Fijian beverage operations, Foster's  Group Pacific Limited, to  Coca-Cola 
Amatil Ltd (CCA) was completed on 7 September and Foster's soft drinks  assets 
were also sold to  CCA on 28 September.  There was no gain  or loss on  either 
disposal. With effect from 1  October, our associate distribution business  in 
Dubai previously reported  as part of  Australia has been  transferred to  our 
Europe division.



(1) Pro forma volumes and financial information are based on results reported
under IFRS and SABMiller accounting policies for the period from 1 April 2011
to 30 September 2011, as if the Foster's and Pacific Beverages transactions
had occurred on 1 April 2011.



(2) Pro forma continuing basis adjusts for the impact of discontinued licensed
brands in all comparative information.







South Africa: Beverages



                                                       Sept   Sept

Financial summary                                      2012   2011   %
Group revenue (including share of associates) (US$m)  2,530  2,669 (5)
EBITA¹ (US$m)                                           426    446 (4)
EBITA margin (%)                                       16.8   16.7
Sales volumes (hl 000)
- Lager                                              12,446 12,290   1
- Soft drinks                                         7,810  7,245   8
- Other alcoholic beverages                             708    646  10



¹ In  2012 before  net  exceptional charges  of  US$12 million  being  charges 
incurred in relation to the  Broad-Based Black Economic Empowerment scheme  of 
US$10 million and business capability  programme costs of US$2 million  (2011: 
US$13 million  being charges  incurred in  relation to  the Broad-Based  Black 
Economic Empowerment scheme of US$15 million and business capability programme
credits of US$2 million).



In South Africa, the  focus on market-facing  investment and retail  execution 
continued to deliver volume growth, despite a challenging economic and trading
environment. Group revenue  declined by  5% at reported  exchange rates,  but 
grew by 10% on a constant currency basis.  Group revenue per hl grew by 6%  on 
the same  basis.  Lager  revenue  benefited from  a  moderate  price  increase 
executed towards the  end of  the previous  financial year,  which was  partly 
offset by an above  inflation excise increase, and  the continued strength  of 
our premium portfolio. Overall revenue  growth was somewhat restricted by  the 
below-inflationary price increases in the soft drinks portfolio.



Lager volumes grew 1% despite the adverse  impact of the timing of the  Easter 
peak period,  and  we  continued  to gain  market  share.  Volume  growth  was 
sustained by continuing  superior retail execution  and customer service,  and 
innovative brand promotional  campaigns. Key aspects  of our sales  execution 
included trade  marketing and  customer management  relationship  initiatives, 
customer loyalty programmes and sales  force skills development. Castle  Lite 
gained additional market share in the premium segment, supported by media  and 
through the  line campaigns  associated  with its  unique 'Extra  Cold'  brand 
positioning. Castle Lager grew strongly backed by the success of the 'It  all 
comes together with a Castle' campaign which draws on the brand's  association 
with South Africa's most  popular national sports.  While Carling Black  Label 
volumes  declined  slightly,  performance  in  the  second  quarter  improved, 
supported by the award winning marketing campaign 'Carling Cup'.



Soft drinks volumes  grew 8%,  cycling a  relatively weak  performance in  the 
prior period and benefiting from increased channel penetration through the use
of market logistics partners. The use of market level partnerships and reward
structures, which were also used to  penetrate key classes of trade,  resulted 
in benefits  particularly for  two litre  PET packs.  Volume growth  was  also 
driven by very low  price increases and warmer  than expected weather in  July 
and August. Growth  in the still  drinks portfolio was  better than  expected, 
with strong performances from Powerade and Play.



Our associate  Distell reported  good  revenue and  volume growth  across  its 
portfolio of  wines,  spirits  and  RTDs  reflecting  its  diverse  geographic 
footprint and despite subdued consumer spending in many of its export markets.



Our drive for productivity to fund market-facing investment continued with the
beer business delivering further  productivity in variable distribution  costs 
and fixed costs. The soft drinks  business saw some reduction in the  pressure 
on packaging costs while continuing  to benefit from operational  efficiencies 
in the supply  chain from distribution  and warehousing initiatives.  Reported 
EBITA declined by 4% (increased by 11% on a constant currency basis) and EBITA
margin grew by 10 bps to 16.8%. EBITA growth was affected by our share of  our 
associate Distell's EBITA which was  significantly below the prior  comparable 
period  as  the   result  of   a  one-off   excise  charge,   caused  by   the 
reclassification of wine aperitifs by the South African Revenue Service.







South Africa: Hotels and Gaming



                                                     Sept

Financial summary                          Sept 2012 2011   %
Group revenue (share of associates) (US$m)       233  247 (6)
EBITA (US$m)                                      65   67 (2)
EBITA margin (%)                                28.0 26.9
Revenue per available room (Revpar) - US$       66.0 68.9 (4)





SABMiller is a 39.7% shareholder in the Tsogo Sun Group which is listed on the
Johannesburg Stock Exchange.



Our share of Tsogo Sun's reported revenue was US$233 million, a decrease of 6%
over the prior  period (up  7% on an  organic, constant  currency basis).  The 
organic, constant currency  results indicate  an improvement in  trading in  a 
market which is  affected by low  growth and relatively  high inflation,  with 
reported results impacted by the weakening rand.



Gaming revenues were up 8% on  a constant currency basis. The gaming  industry 
in the major provinces  of South Africa experienced  varying levels of  growth 
over the  prior period  with the  largest  province in  terms of  gaming  win, 
Gauteng, reporting 6% growth  and the KwaZulu-Natal  province growing by  12%. 
The Tsogo Sun  casinos in  these provinces  maintained their  market share  by 
growing in line with the market.



The South African hotel industry continued to show signs of improvement during
the half  year.  Demand  in  the key  group  and  conventions,  corporate  and 
government segments grew  with constant  currency revenue  per available  room 
growth of 11% for the six months.  This has been mainly occupancy driven  with 
pressure on rate increases still evident in the market.



Reported EBITA for  the half  year declined  by 2% with  growth of  12% on  an 
organic, constant currency basis. The underlying growth was driven by improved
gaming and hotel revenues  together with cost savings,  which resulted in  the 
EBITA margin improving to 28.0%.







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  2012. There were  no 
standards, interpretations or amendments  adopted by the  group since 1  April 
2012 which  have had  a material  impact on  group results.  The  consolidated 
balance sheets as  at 30  September 2011  and as at  31 March  2012 have  been 
restated for  further  adjustments  relating to  the  initial  accounting  for 
business combinations, details of  which are provided in  note 12. The  Annual 
Report and Accounts  for the year  ended 31  March 2012 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.



SABMiller  uses  group  revenue  and  EBITA  (as  defined  in  the   financial 
definitions section)  to  evaluate  performance and  believes  these  measures 
provide stakeholders  with  additional information  on  trends and  allow  for 
greater comparability  between  segments. Segmental  performance  is  reported 
after the specific apportionment of attributable head office costs.



Disclosure of volumes

In the determination  and disclosure  of sales volumes,  the group  aggregates 
100% of the volumes of all consolidated subsidiaries and its equity  accounted 
percentage of all  associates' and joint  ventures' volumes. Contract  brewing 
volumes are excluded from  volumes although revenue  from contract brewing  is 
included within group revenue. Volumes exclude intra-group sales volumes. This
measure of volumes is used in the segmental analyses as it closely aligns with
the consolidated group revenue and EBITA disclosures.



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. See the financial  definitions section for  the 
definition.



Adjusted EBITDA

The group uses  an adjusted EBITDA  measure of cash  generation which  adjusts 
EBITDA (as defined in the financial definitions section) to exclude cash flows
relating to exceptional items and to  include the dividends received from  the 
MillerCoors joint venture. Given the significance of the MillerCoors  business 
and the  access  to its  cash  generation,  inclusion of  the  dividends  from 
MillerCoors (which approximate  the group's  share of its  EBITDA) provides  a 
useful measure  of the  group's overall  cash generation.  Excluding the  cash 
impact of exceptional  items allows  the level  and underlying  trend of  cash 
generation to be understood.



Disposals

On 7 September 2012 the group completed the disposal of Foster's interests  in 
its Fijian  beverage operations,  Foster's Group  Pacific Limited,  and on  28 
September 2012  the  group completed  the  disposal of  Foster's  soft  drinks 
assets, both to Coca-Cola Amatil Limited (CCA).



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 information.



Net exceptional charges of  US$127 million before finance  costs and tax  were 
reported during the  period (2011: US$210  million) including net  exceptional 
charges of  US$nil (2011:  US$35  million) related  to  the group's  share  of 
associates' and joint ventures' exceptional items. The net exceptional  charge 
included:

·  US$70  million  (2011:  US$115  million)  charge  related  to  business 
capability programme costs in Latin  America, Europe, South Africa:  Beverages 
and Corporate;

· US$10 million (2011: US$15 million) charge in respect of the Broad-Based
Black Economic Empowerment scheme in South Africa; and

· US$47 million  charge related  to integration  and restructuring  costs, 
including the closure of certain beverage lines, in Asia Pacific (2011:  US$12 
million related to  various integration  and restructuring  projects in  Latin 
America).



In addition to  the amounts noted  above, the net  exceptional charge in  2011 
included transaction-related advisers' costs of US$18 million associated  with 
the acquisition  of Foster's,  an exceptional  loss of  US$15 million  on  the 
disposal of  the distribution  business in  Italy, and  the group's  share  of 
associates' and joint ventures' exceptional  charges of US$35 million  related 
to the group's share of the impairment of the Sparks brand in MillerCoors.



Finance costs

Net finance costs were US$379 million,  an 87% increase on the prior  period's 
US$203 million, mainly as a result of the increase in net debt related to  the 
Foster's acquisition. Finance costs in the  current period include a net  gain 
of US$12 million (2011: US$7 million)  from the mark to market adjustments  of 
various derivatives  on capital  items for  which hedge  accounting cannot  be 
applied. Finance costs  in the prior  period also included  a net  exceptional 
gain of  US$19 million  related to  the  mark to  market gains  on  derivative 
financial instruments partially  offset by financing  fees connected with  the 
Foster's transaction. The  mark to market  gain, and in  the prior period  the 
transaction-related gain, has been excluded from the determination of adjusted
net finance costs and adjusted earnings per share. Adjusted net finance  costs 
were US$391 million, up 71%.



Interest cover, as defined in the financial definitions section, has decreased
to 8.3 times from 12.7 times in the prior period.



Profit before tax

Adjusted profit  before tax  of US$2,759  million increased  by 12%  over  the 
comparable period in the prior year, primarily as a result of higher  volumes, 
selective price increases,  positive mix  and the impact  of acquisitions  and 
business combinations in the prior financial year more than offsetting  higher 
input, marketing and  fixed costs,  finance costs  and the  impact of  adverse 
foreign exchange rate movements.



Profit before tax was  US$2,279 million, up 12%,  including the impact of  the 
exceptional and  other  adjusting finance  items  noted above.  The  principal 
differences between  reported and  adjusted profit  before tax  relate to  the 
amortisation of intangible assets (excluding software) and exceptional items.
Amortisation amounted to US$229 million in the half year compared with  US$105 
million in  the  prior  half  year,  with  the  increase  resulting  from  the 
amortisation of Foster's intangible assets,  and net exceptional charges  were 
US$127 million compared with US$191 million in the prior year period.



Taxation

The effective rate of tax for the half year before amortisation of  intangible 
assets (excluding software)  and exceptional  items is 27.5%  compared with  a 
rate of 28.5% in the  prior year period. The  reduction in the rate  primarily 
results from geographic changes in taxable  profit mix, together with the  tax 
effect of  the  interest charge  on  the additional  debt  taken on  with  the 
Foster's acquisition.



Earnings per share

The group  presents adjusted  basic  earnings per  share, which  excludes  the 
impact of  amortisation of  intangible  assets (excluding  software),  certain 
non-recurring items and  post-tax exceptional  items, in order  to present  an 
additional measure of performance  for the periods  shown in the  consolidated 
interim financial information. Adjusted basic  earnings per share of 118.1  US 
cents were up 14% on the comparable period in the prior year, benefiting  from 
higher  profits,   including  the   impact   of  acquisitions   and   business 
combinations, and  a lower  effective  tax rate,  partially offset  by  higher 
finance costs and adverse foreign currency movements. An analysis of  earnings 
per share is shown in note 5.  On a statutory basis, basic earnings per  share 
were higher by 15%  at 100.1 US  cents (2011: 87.4 US  cents) for the  reasons 
given above, together with lower exceptional costs and higher amortisation  of 
intangible assets (excluding software) this half year.



Cash flow and capital expenditure

Net cash generated from operations  before working capital movements  (EBITDA) 
of US$2,657  million increased  by 16%  compared with  the prior  year  period 
(2011: US$2,298 million). This  increase was primarily  due to higher  revenue 
leading to  higher  operating  cash flows,  offset  by  unfavourable  currency 
movements. Dividends  received from  the MillerCoors  joint venture  (reported 
within cash flows from investing activities) amounted to US$517 million (2011:
US$494 million).



Adjusted EBITDA of  US$3,255 million (comprising  EBITDA before cash  outflows 
from  exceptional  items  of  US$81  million  plus  dividends  received   from 
MillerCoors of US$517 million) increased by 12% compared with the same  period 
in the prior year (2011: US$2,913  million), reflecting the higher EBITDA  and 
MillerCoors' dividends partially offset by lower cash exceptional items.



Net cash generated from operating activities of US$1,875 million was up US$156
million on the same  period in the prior  year, primarily reflecting  improved 
EBITDA and lower tax paid due to the receipt of a non-recurring tax refund  in 
Australia, partially offset by higher net interest paid and cash outflow  from 
working capital.



Capital expenditure on  property, plant and  equipment for the  six months  of 
US$599 million has decreased compared with  the same period in the prior  year 
(2011: US$680 million). The group has  continued to invest selectively in  its 
operations to  support  future growth,  especially  in Africa  where  capacity 
constraints have been experienced. New brewery capacity has been  commissioned 
in South Sudan and Nigeria during the half year and further capacity  projects 
are currently in progress in Ghana,  Tanzania, Uganda and Zambia, and also  in 
Peru. Capital  expenditure including  the purchase  of intangible  assets  was 
US$655 million (2011: US$760 million).



Free cash flow  improved by 14%  to US$1,684 million,  reflecting higher  cash 
generated from operating activities and  lower capital expenditure. Free  cash 
flow is  detailed  in note  10b,  and  defined in  the  financial  definitions 
section.



Borrowings and net debt

Gross debt at 30 September 2012, comprising borrowings together with the  fair 
value of derivative  assets or liabilities  held to manage  interest rate  and 
foreign currency  risk  of borrowings,  decreased  to US$17,892  million  from 
US$18,607 million  at  31 March  2012,  primarily as  a  result of  a  partial 
repayment of the Foster's acquisition facilities and the repayment on maturity
of bonds in Colombia and South Africa. Net debt, comprising gross debt net  of 
cash and  cash  equivalents, decreased  to  US$17,112 million  from  US$17,862 
million at 31 March 2012. An analysis of net debt is provided in note 10c.



The group's gearing (presented as a ratio of net debt/equity) has decreased to
65.0% from 68.6% at  31 March 2012 (restated).  The weighted average  interest 
rate for the  gross debt portfolio  at 30  September 2012 was  4.4% (31  March 
2012: 4.9%).



Total equity

Total equity increased from US$26,032 million  at 31 March 2012 (restated)  to 
US$26,337 million at  30 September  2012. The  increase was  primarily due  to 
profit for  the  period,  partly  offset by  dividend  payments  and  currency 
translation movements on foreign currency investments.



Goodwill and intangible assets

Goodwill decreased to US$20,188 million (31 March 2012: US$20,297 million)  as 
a result  of  foreign exchange  movements  in the  period.  Intangible  assets 
decreased in the period to US$9,790 million (31 March 2012: US$9,958  million) 
primarily  owing  to  amortisation,  partially  offset  by  foreign   exchange 
movements and  additions related  to the  business capability  programme.  The 
comparatives for goodwill and intangible assets have been restated to  reflect 
adjustments to  provisional  fair  values of  business  combinations,  further 
details of which are provided in note 12.



Currencies

The exchange rates to the US dollar used in preparing the consolidated interim
financial information are detailed in the table below, with most of the  major 
currencies in which we operate weakening against the US dollar.



                         Six months ended Appreciation/ (depreciation)

                           30 September
                             2012    2011                            %
Average rate
Australian dollar (AUD)      0.98    0.95                          (2)
South African rand (ZAR)     8.20    7.08                         (14)
Colombian peso (COP)        1,792   1,796                            -
Euro (€)                     0.79    0.71                         (11)
Czech koruna (CZK)          19.88   16.92                         (15)
Peruvian nuevo sol (PEN)     2.64    2.76                            4
Polish zloty (PLN)           3.32    2.91                         (12)
Closing rate
Australian dollar (AUD)      0.96    1.03                            7
South African rand (ZAR)     8.31    8.10                          (3)
Colombian peso (COP)        1,801   1,915                            6
Euro (€)                     0.78    0.75                          (4)
Czech koruna (CZK)          19.32   18.33                          (5)
Peruvian nuevo sol (PEN)     2.60    2.77                            7
Polish zloty (PLN)           3.20    3.30                            3



Risks and uncertainties

The principal  risks  and uncertainties  for  the  first six  months  and  the 
remaining six months of the financial year remain as described on pages 22 and
23 of the 2012 Annual Report. The risks are summarised as follows:



· The risk that, in light of the on-going consolidation of the brewing and
beverages industry, the group's ability to grow and increase profitability  is 
limited. This may  be the  result of  failing to  participate in  value-adding 
transactions; overpaying for an acquisition; failing to implement  integration 
plans successfully;  or failing  to  identify and  develop new  approaches  to 
market and category entry.



· The  risk that  the group's  market positions  come under  pressure  and 
profitable growth opportunities may not be  realised. This may be a result  of 
the group failing  to ensure  the development  of strong  and relevant  brands 
which resonate with the consumer, shopper and customer; or failing to  improve 
its  commercial   capabilities   to   deliver   propositions   which   respond 
appropriately to changing consumer preferences.



· The risk that the group's  long-term profitable growth potential may  be 
jeopardised due to a failure to  develop and maintain an appropriate  pipeline 
of talented management.



· The  risk  that regulation  places  increasing restrictions  on  pricing 
(including tax),  availability and  marketing of  beer and  drives changes  in 
consumption behaviour.  In  affected countries  the  group's ability  to  grow 
profitably and contribute to local communities could be adversely affected.



· The risk  that following the  Foster's acquisition, the  group fails  to 
deliver its  specific,  communicated  financial  and  value  creation  targets 
through its integration plans;  this may limit the  group's future growth  and 
profitability, as well as impacting  its reputation for commercial  capability 
and for making value-creating acquisitions.



· The risk that the  group fails to execute  and derive benefits from  the 
business capability projects, resulting  in increased project costs,  business 
disruption and reduced competitive advantage in the medium term.



Dividend

The board has declared a cash interim dividend of 24.0 US cents per share,  an 
increase of 12%. The dividend  will be payable on  Friday 14 December 2012  to 
shareholders registered on the London  and Johannesburg registers on Friday  7 
December 2012. The ex-dividend trading dates will be Wednesday 5 December 2012
on the London  Stock Exchange  (LSE) and  Monday 3  December 2012  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.  Further 
details relating to dividends are provided in note 6.



The rates of exchange applicable for  US dollar conversion into South  African 
rand and sterling were determined on  Wednesday 21 November 2012. The rate  of 
exchange determined for converting to  South African rand was  US$:ZAR8.906800 
resulting in an equivalent interim dividend  of 213.76320 SA cents per  share. 
The rate of exchange determined for converting to sterling was GBP:US$1.593791
resulting in an equivalent interim dividend of 15.0584 UK pence per share.



Since the introduction on 1  April 2012 of a  new dividend withholding tax  in 
South Africa, the JSE Listings  Requirements require disclosure of  additional 
information in relation to any  dividend payments. Shareholders registered  on 
the  Johannesburg  register  are  therefore  advised  that  the  new  dividend 
withholding tax  will be  withheld from  the gross  final dividend  amount  of 
213.76320 SA cents per share at a rate of 15%, unless a shareholder  qualifies 
for an exemption; shareholders registered on the Johannesburg register who  do 
not quality  for  an  exemption  will therefore  receive  a  net  dividend  of 
181.69872 SA cents per share. The company, as a non‑resident of South  Africa, 
was not subject to  the secondary tax on  companies (STC) applicable before  1 
April 2012, and accordingly, no STC credits are available for set-off  against 
the dividend withholding tax liability on  the final net dividend amount.  The 
dividend is payable in cash as a  'Dividend' (as defined in the South  African 
Income Tax  Act, 58  of 1962,  as amended)  by way  of a  reduction of  income 
reserves. The dividend withholding tax  and the information contained in  this 
paragraph is  only of  direct application  to shareholders  registered on  the 
Johannesburg register, who should direct  any questions about the  application 
of the new dividend withholding  tax to Computershare Investor Services  (Pty) 
Limited, Tel: +27 11 373-0004.



From the commencement of trading on Thursday 22 November 2012 until the  close 
of business on  Friday 7 December  2012, no transfers  between the London  and 
Johannesburg registers  will be  permitted, and  from Monday  3 December  2012 
until  Friday  7   December  2012,   no  shares  may   be  dematerialised   or 
rematerialised, both days inclusive.



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,  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  the 
statutory and  audited  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 management report  herein includes  a fair review  of the  information 
required by DTR 4.2.7 and DTR  4.2.8 of the Disclosure and Transparency  Rules 
of the United Kingdom's Financial Services Authority.



At the date of this statement, the directors of SABMiller plc are those listed
in the SABMiller  plc Annual Report  at 31  March 2012 with  the exception  of 
Meyer Kahn and Rob Pieterse, who retired  from the board, and Alan Clark,  who 
was appointed to  the board,  all with  effect from 26  July 2012.  A list  of 
current   directors   is   maintained   on   the   SABMiller   plc    website: 
www.sabmiller.com.



On behalf of the board





EAG    Mackay     
 JS Wilson

Executive                                                             chairman 
 Chief financial
officer



21 November 2012











INDEPENDENT REVIEW REPORT OF CONSOLIDATED INTERIM FINANCIAL INFORMATION TO
SABMILLER PLC



Introduction

We have been engaged by the company  to review the condensed set of  financial 
statements in the interim report for  the six months ended 30 September  2012, 
which comprises the consolidated  income statement, consolidated statement  of 
comprehensive income,  consolidated  balance  sheet,  consolidated  cash  flow 
statement, consolidated statement of changes  in equity and related notes.  We 
have read the other information contained in the interim 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 interim report  is the responsibility  of, and has  been approved by,  the 
directors. The directors are responsible  for preparing the interim 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 interim 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 interim 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 interim  report 
for the six months ended  30 September 2012 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

Chartered Accountants

London



21 November 2012









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





                                        Six months    Six months          Year

                                     ended 30/9/12 ended 30/9/11 ended 31/3/12

                                         Unaudited     Unaudited       Audited

                               Notes          US$m          US$m          US$m
Revenue                          2          11,370        10,539        21,760
Net operating expenses                     (9,508)       (8,930)      (16,747)
Operating profit                 2           1,862         1,609         5,013
Operating profit before                      1,989         1,784         3,987
exceptional items
Exceptional items                3           (127)         (175)         1,026
Net finance costs                            (379)         (203)         (562)
Interest payable and similar                 (723)         (423)       (1,093)
charges
Interest receivable and                        344           220           531
similar income
Share of post-tax results of     2             796           635         1,152
associates and joint ventures
Profit before taxation                       2,279         2,041         5,603
Taxation                         4           (598)         (556)       (1,126)
Profit for the period                        1,681         1,485         4,477
Profit attributable to                          91           103           256
non-controlling interests
Profit attributable to owners    5           1,590         1,382         4,221
of the parent
                                             1,681         1,485         4,477
Basic earnings per share (US     5           100.1          87.4         266.6
cents)
Diluted earnings per share (US   5            99.1          86.8         263.8
cents)

All operations are continuing.



The notes are an integral part of this condensed interim financial
information.







SABMiller plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 September





                                                                          Year
                                             Six months    Six months
                                                                         ended
                                          ended 30/9/12 ended 30/9/11 31/3/12

                                              Unaudited     Unaudited Audited

                                     Notes          US$m          US$m    US$m
Profit for the period                              1,681         1,485   4,477
Other comprehensive income:
Currency translation differences on                (318)       (1,072)     136
foreign currency net investments
(Decrease)/increase in foreign
currency translation reserve during                (318)       (1,087)     153
the period
Recycling of foreign currency                          -            15    (17)
translation reserve on disposals
Net actuarial losses on defined                        -             -     (9)
benefit plans
Net investment hedges:
- Fair value gains/(losses) arising                   15           184     (1)
during the period
Cash flow h

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