Analysis - Anheuser-Busch InBev expected to grow Brazil volumes again by 2014
Brazil is a key market for the brewer
Anheuser-Busch InBev's volumes performance in Brazil should improve in the second half of this year and grow again in 2014, according to an analyst.
Earlier today (30 April), the brewer reported a 8.2% fall in volumes in the South American country, through its AmBev unit, as part of an overall drop in group volumes. However, Stifel analyst Mark Swartzberg, said in a note: "We expect volume declines (in Brazil) to moderate in the back half of 2013 and return to growth in 2014."
On the group's position as whole, the analyst said it regarded A-B InBev's earnings power as "unchanged", flagging that it is "hard to to argue Brazil's not a growth market".
Looking ahead to A-B InBev's caputre of Grupo Modelo, Swartzberg noted that the Mexican brewer's underlying trends are "better than anticipated".
He added that with no other significant M&A activity around the corner, Stifel expects the brewer to ramp cash returns to shareholders significantly".
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