UK: "Modest" Q1 expected for SABMiller - analyst
By James Wilmore | 17 July 2012
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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).
Expert analysis
SABMiller plc: Consumer Packaged Goods Company Profile, SWOT & Financial Report
The profile contains a company overview, key employees, business description, competitive benchmarking, SWOT analysis, key facts, information on products and services, details of locations and subsidiaries, plus information on key news events affecting the company.
Sectors: Beer & cider, Company results
Companies: SABMiller, InBev, Modelo
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UK: "Modest" Q1 expected for SABMiller - analyst
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