LONDON (Commodity Online): London-based brewing and beverages company, SABMiller Plc (LON:SAB) first-half profits fell by 31% on the weak beer volume and currency fluctuations.

The company’s profits fell from USD 1.42 billion to USD 973 million during the first half of the current fiscal. Company’s revenues fell by 21% to USD 8.85 billion, as comparable beer volumes fell 1%. Secondly, as many of its key currencies dropped in value against the U.S. dollar compared to the prior-year period.

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"The weakness of our major operating currencies against the U.S. dollar has affected reported results, but we have continued to generate a strong underlying performance," said CEO Graham Mackay.

SABMiller shares climbed 4% in London trade on Thursday, 19 November 2009 at 1714 Pounds and have climbed by close to 30% over past three months. "This is a strong performance from SAB, which will likely prompt upgrades (to annual earnings estimates by analysts) in the region of 5% to 10%," experts opined.

The impact of current year price trend is expected to impinge the profitability further as the global grain supplies are expected to fall short of total demand. Wheat futures was firm for a seventh straight session for March delivery and rose 12.75 cents, or 2.2 percent, to $5.965 a bushel on the Chicago Board of Trade. The prices were high, on speculation that U.S. planting will drop more than previously expected because of unusually wet weather.

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