A "modest" Q1 is being predicted for SABMiller

A "modest" Q1 is being predicted for SABMiller

SABMiller is expected to report "modest" Q1 figures next week due to constrained production in Africa and challenges in Europe, an analyst has predicted. 

In a note published earlier today (17 July), Investec said the group faces the "toughest" of the quarterly prior year comparatives, where volumes were up 5% in last year's Q1. "With production constraints flagged in Africa, and a challenged European consumer, we forecast 2% organic group lager volumes, and 4% organic revenue growth," the note said.

Investec also predicts that last month's tie-up between Grupo Modelo and Anheuser-Busch InBev rules out any prospective bid for SABMiller by A-B InBev "in the next 12 months".

The analyst also said it was moving its recommendation to 'Hold'. "Though we remain supporters of the medium-term growth narrative, we view this as an appropriate point to move to the side-lines," the note said.

"With the shares at an all-time high, and a modest Q1 in prospect, as well as on-going FX headwinds and an ABI/Modelo deal which could remove short term bid speculation, we move to 'Hold'."

SABMiller is due to report Q1 figures next Thursday (26 July).