Beverage giant SABMiller is expected to report a rise in annual revenues Thursday, driven by excise-driven prices increases and its product and geographical mix. In a trading update last month, the brewer of popular beers Groslsh and Peroni said revenues would increase 7.0% on an organic constant currency basis, with group revenue per hectolitre up 3.0%
Lager volumes grew 3.0% while soft-drink volumes were up 4.0% on an organic basis.
Canaccord Genuity downgraded the company to a hell rating ahead of its annual results, saying its shares were too expensive.
But, notwithstanding its manifest emerging market attractions, the shares performance now renders them too expensive in our view, with the market needing to make ever more stretched fundamental assumptions to justify the valuation.
It said disappointing margins and momentum in the US, weakening performance in Latin America in the wake of price increases, and difficult trading conditions in South Africa persuade us that now is the time to take profit.
Analysts at Credit Suisse predict full-year revenue to rise to $17.5bn and adjusted pre-tax profit to increase to $5.4bn.
Shares fell in Wednesday afternoon trading in the lead up to the results.
