US: SABMiller's long-term growth remains "attractive" - analyst
SABMiller's JV MillerCoors is performing steadily
SABMiller's long-term growth remains "attractive" but a flat organic group margin is expected for the full-year, an analyst has said.
Analyst Normura's comments today (8 August) came after SABMiller's JV with Molson Coors, MillerCoors, reported that net profits were up 13.2% to US$ 723.3m in the six months to the end of June. A 4% rise in sales to $3.98bn was attributed to its craft beer brands.
Normura suggested the 58% of MillerCoors that SABMiller owns accounts for around 10% of the company's EBITA.
However, Nomura said in a note that it sees minimal short-term upside potential for SABMiller. "With higher input costs at the group level, exacerbated by FX movements, as well as some rebasing of pricing in Europe, we estimate a flat organic group margin in FY 13," the note said.
In a conference call, MillerCoors pointed to a “significant acceleration of marketing investment” in H2, Nomura said. But the analysts added: "We believe the emphasis here is on improving mix rather than volume growth."
Last month, SABMiller reported its first-quarter performance has been "in line with expectations" as group revenue rose 8%.
In the fourth part of Euromonitor's preview of 2013, alcoholic drinks analysts Spiros Malandrakis and Zsuzsa Szilagyi consider what the future holds for the world's brewers....
He's back, Back, BACK. After an absence of almost two years, we're delighted to welcome Larry Nelson, the publisher of Brewers' Guardian, back into the just-drinks fold. and, to kick things off again,...
- Cannabis – A clear and present danger to alcohol
- Is Irish whiskey ready to recognise its potential?
- Interview - Bernstein analyst Trevor Stirling
- Global Travel Retail - What is the Grey Market?
- The European beer market - Focus
- Diageo appoints first programmatic marketing head
- Corporate Relations Director to leave Diageo
- Bacardi names new global communications head
- Diageo strike threat postponed with fresh vote
- Pernod Ricard pairs Usain Bolt with Mumm Champagne