Anheuser-Busch Inbev SA/NVNYSE
Today, 7:18 AM
- Anheuser-Busch InBev (NYSE:BUD) reports a 0.9% decline in total global volume in Q3.
- Volume by region: North America -2.4%, Mexico +9.6%, Latin America -North -3.5%, Latin America South +1.5%, Europe -2.6%, Asia Pacific +1.5%,
- Total revenue fell 2% Y/Y to $11.1B during the quarter, led by sales gains for Coronoa (+14.8%), Stella Artois (+12.2%) and Budweiser (+4.8%). Organic revenue was up 2.8%.
- EBITDA was down 2.0%, due in part to weakness in Brazil. EBITDA margin decreased -178 bps to 36.3%.
- Anheuser-Busch press release (.pdf)
- Previously: Anheuser-Busch Inbev misses by $0.07, misses on revenue (Oct. 28)
- BUD -3.58% premarket to $117.11.
Today, 4:31 AM
- Novo Nordisk (NYSE:NVO) -15% premarket after cutting its profit forecast for 2016 amid difficulties in the U.S.
- Sanofi (NYSE:SNY) shares are up 7.4% before the bell, lifting its profit outlook for the year and detailing news of a big buyback.
- Risk aversion and negative rates continued to weigh on trading at UBS, but the bank recorded a Q3 beat.
- RBS swung to a third-quarter loss on legacy misconduct and restructuring charges.
- Total (NYSE:TOT) topped expectations thanks to cost cuts and an increase in output.
- AB Inbev (NYSE:BUD) -3% premarket due to sorrows in Brazil, cutting its guidance due to weakness in that market.
Today, 4:10 AM
Yesterday, 5:30 PM
Tue, Oct. 25, 6:42 AM
- In a major milestone for autonomous trucking, some 45,000 cans of Budweiser (NYSE:BUD) beer arrived late last week to a Colorado warehouse after traveling over 120 highway miles in a self-driving semi with no driver at the wheel.
- Otto, the autonomous truck subsidiary of Uber (Private:UBER), shipped the brew with a driver monitoring from the truck's sleeper berth for the entire two-hour journey.
Mon, Oct. 10, 11:32 AM
- Goldman Sachs takes up coverage on Anheuser-Busch InBev (NYSE:BUD) again with the risk of the SABMiller takeover flaming out now in the past.
- Analyst Mitch Collett is the latest to see the synergy targets set by the beer giant as achievable and forecasts EBITDA growth of 9% for 2017 through 2019.
- Mark your calendar for 2020 as the time period that AB InBev will be on the prowl again for a major acquisition (see speculation on Coca-Cola as the target), advises GS.
- The investment firm initiates BUD at Buy and assigns a price target of €135. Shares trade at €115.00 in Brussels at last check.
Wed, Oct. 5, 3:14 PM
- Morgan Stanley jumps back into covering Anheuser-Busch InBev (BUD +0.4%) with the integration of SABMiller set to begin right around the corner.
- Analyst Olivier Nicolai rates BUD at Overweight and points to the company's top-line growth and stronger earnings profile post-Megabrew.
- Perhaps the most important part of the MS thesis is its forecast that AB InBev can generate $2.5B in cost synergies vs. the $1.4B (four-years out) projected by the company.
Tue, Oct. 4, 7:51 AM
Thu, Sep. 29, 3:34 PM
- It don't take long after shareholders at Anheuser-Busch (BUD -1.4%) and SABMiller (OTCPK:SBMRY) formally agreed to a mega-merger before talk of what's the next M&A move cropped up with plenty of heavy hitters holding shares.
- Both HSBC and Stifel Nicolaus think Coca-Coca (KO -0.1%) will be the next target for the beer behemoth, perhaps even sooner than some may think. The synergy math could be stunning if all the complications of an acquisition are worked out.
- On the bottling side, the integration of SABMiller into A-B has plenty of implications for the sector, even more so if speculation over a Coca-Cola deal escalates.
- Related bottling stocks: COKE, CCE, KOF, OTC:COCSF, OTC:COKEB, OTCPK:CCLAY, OTCPK:CCLAF.
Wed, Sep. 28, 12:58 PM
- The SEC fines Anheuser-Busch InBev (BUD +0.7%) $6M for violations of the Foreign Corrupt Practices Act as part of a settlement.
- The regulator says a probe of the company determined government officials in India were give improper payments through third-party sales promoters.
- The payments were recorded by AB InBev as legitimate expenses.
- SEC press release
Wed, Sep. 28, 9:04 AM
- While it was shareholders at Anheuser-Busch (NYSE:BUD) and SABMiller (OTCPK:SBMRY) that approved an industry-rattling merger today, Molson Coors (NYSE:TAP) is the beer stock on the move.
- The finalized deal gives a green light to Molson Coors to close on acquiring SABMiller’s interest in Miller Coors in a deal valued around $12B.
- Molson is a surprisingly thinly-covered stock and could be a post-Megabrew sleeper.
- Previously: AB InBev shareholders back Megabrew deal (Sept. 28)
- Previously: SABMiller shareholders approve A-B InBev deal (Sept. 28)
- TAP +4.59% premarket to $112.47 (52-week high territory).
Wed, Sep. 28, 7:28 AM
- Shareholders at SABMiller (OTCPK:SBMRY) approved the company's merger with Anheuser-Busch InBev (NYSE:BUD) by a huge margin.
- The shares of the new company will begin trading on October 11 in Brussels to be followed by secondary listings on exchanges in New York, Mexico City, and Johannesburg.
- As expected, AB InBev shareholders also approved the monster beel deal.
- Previously: AB InBev shareholders back Megabrew deal (Sept. 28)
- BUD +1.24% premarket to $133.51. SBMRY +0.55% in London.
Wed, Sep. 28, 5:14 AM
- AB InBev (NYSE:BUD) shareholders have backed the brewing giant's takeover of rival SABMiller (OTCPK:SBMRY) at a general meeting in Brussels this morning, clearing one hurdle for the $104B deal.
- Now all eyes will turn to another meeting, which is under way in London, at which SABMiller's shareholders will vote whether or not to rubber stamp the agreement.
Tue, Sep. 20, 4:28 PM
- Shareholders holding sizable positions in SABMiller (OTCPK:SBMRY) are in the spotlight as the company's meeting on September 26 approaches. The vote on the Anheuser-Busch InBev (NYSE:BUD) merger will be the main event of the SABMiller gathering.
- Large institutional shareholders such as BlackRock and State Street Global Advisers are seen approving the deal because they also own interests in BUD and Molson Coors, but the hedge fund vote is harder to forecast. Some hedgies may gamble and skip out on voting by declining to convert their options and derivatives to save on the exercise tax.
- Another reason that the merger vote may be closer than anticipated is that both Altria (NYSE:MO) and the Santo Domingo family are excluded from having a say.
Wed, Sep. 14, 9:39 AM
- In a fresh note to investors, Susquehanna analyst Pablo Zunaic tackles the huge question of if PepsiCo (NYSE:PEP) or Coca-Cola (NYSE:KO) will be the next major target for Anheuser-Busch InBev (NYSE:BUD) down the road.
- Though it's highly speculative at this point, PepsiCo appears as the more logical choice if the pros and cons are lined up. Snippets from Zuanic's note are posted below.
- On accretion value: "An acquisition of PEP drinks would be over 20% EPS accretive (one quarter stock funded), while a bid for KO would not (all cash a KO bid would push gearing to 8x)."
- On global markets: "True, overseas KO is much larger than PEP, but that may be a moot point as the KO overseas business is mainly in the hands of independent bottlers (so is PEP’s except for Russia). But we think PEP bottlers in markets like Mexico, China, India, and Canada, could be more reasonable acquisition targets for BUD down the road (than KO bottlers) and would actually provide relevant scale up benefits."
- On distribution: "In terms of bringing scale to its beer distributors we note KO and PEP are similar in size in the US (in terms of end unit cases of NARTDs), but more importantly the PEP drinks business is 75% PEP owned while by end of 2017 KO’s US operating business (bottling and distribution) will all be in the hands of independent bottlers."
- On the Buffett factor: "Those expecting a bid for KO say so in part because of the Warren Buffet presence (holder of a 9.3% stake in KO), but would he really want that to be his legacy (i.e., the man that sold the Coke?)."
- Current market caps: BUD $194B, KO $178B, PEP $149B.
- Name check: Financing the deal is one matter, but negotiating a new corporate name for the mega-beverage entity could be just as engaging.
Tue, Sep. 13, 2:29 PM
- Jefferies initiates coverage on Anheuser-Busch InBev (BUD -1.9%) with a Buy rating.
- Analyst Edward Mundy thinks the company is understating the cost savings generated through the SABMiller deal.
- "Our 12 month PT EUR 130 is predicated on the realisation of USD 3bn cost saves on the SABMiller deal vs guidance 1.4bn," writes Mundy. ABI closed at €109.25 in Brussels today.
- In the U.S., BUD trades at $122.91 at last check vs. a post-Megabrew announcement high of $132.91.