News Column

Altria Reports Reduced Quarterly Earnings From SABMiller Investment

July 22, 2014

Samuel Agini

LONDON (Alliance News) - US tobacco company Altria Group Inc Tuesday provided a partial preview of quarterly results for FTSE 100 beverage giant SABMiller PLC.

Reporting its own earnings for the second quarter, Altria said that earnings from its 26.8% economic investment in SABMiller amounted to USD200.0 million in the quarter ended June 30, compared with USD227.0 million in the corresponding quarter a year earlier.

SABMiller reports its results on an end-March financial year, while Altria follows the calendar year.

Altria also reported USD425.0 million from the SABMiller investment in the first six months of 2014, down from USD483.0 million in the corresponding period last year.

The results were provided according to US generally accepted accounting principles at prevailing exchange rates, which differ from the international financial reporting standards used by SABMiller.

"Investors should note that these financial results are derived from management accounts, have not been audited and may be subject to change," SABMiller said in a statement.

SABMiller noted a number of differences concerning the timing of recognition of results as well as differences relating to the accounting treatment of share-based payments, exceptional items, the definition of the US GAAP statutory earnings compared to IFRS, as well as the inclusion within Altria's earnings of gains on the dilution of Altria's investment in SABMiller following the issue of new SABMiller shares pursuant to share option exercises.

SABMiller will provide a first-quarter trading statement on Thursday, in conjunction with its annual general meeting.

SABMiller shares were Tuesday afternoon quoted up 0.4% at 3,401.50 pence.

Overall, Altria reported that net earnings attributable to the company edged down to USD1.262 billion in the second quarter from last year's USD1.266 billion. But earnings per share grew to USD0.64 from USD0.63 in the same quarter last year.

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Source: Alliance News

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