Emerging Money's  Instablog

Emerging Money
Send Message
With hedge fund manager, CNBC regular and long-time veteran of the Russian markets Tim Seymour at the helm, Emerging Money (http://www.emergingmoney.com) provides education, trading analysis and comprehensive views of emerging markets around the world. As economies in the BRIC group and beyond... More
My company:
Emerging Money
My blog:
Emerging Money
  • Emerging Markets key for SABMiler 0 comments
    Nov 18, 2010 9:32 AM | about stocks: BUD

    London-traded brewer SABMiller, distributor of global brands like Coors Light, Miller and Pilsen, attributes its consensus-beating quarterly results to strong emerging economies.

    According to the company, which trades fairly thinly in ADR form as  SBMRY , demand for beer is so robust in Africa and China in particular that selective price increases are on the horizon in some markets.

    Even though  grain   costs have receded somewhat since the price spikes of the summer, SBMRY says enhanced productivity will only "moderately" protect its margins going forward.

    Overall revenue came in at $14.2 billion, up 6% and ahead of $14 billion consensus. Net earnings climbed an unexpectedly robust 19% to $47 billion, well above estimates.

    Africa, China and a weak dollar were the primary factors in the company's strong results, with Western Europe actually coming in "reasonably depressed" -- sales dipped 4% in the region. However, North America also performed extraordinarily well, with net profits in that region up 27%.

    The global  beer   trade is another big theme for us and we watch these stocks carefully as primary consumer plays. Consolidation in the space is leaving fewer and fewer strong players to dominate the market, but those that survive are strong indeed.

    All in all, these results are a good omen for  BUD

    Disclosure: no positions
    Stocks: BUD
Back To Emerging Money's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.