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%.
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