Suntory Beverage & Food: Core Brand Innovation To Drive Growth

Karreta Advisors
1.41K Followers

Summary

  • Suntory Beverage & Food successfully increased volumes of core brands during FY12/2020. We believe performance will strengthen post-pandemic.
  • We believe the company's focus on brand renewals, health-orientated products, and M&A will drive growth stronger than consensus forecasts.
  • The shares are trading on consensus PER FY12/2021 18.5x and free cash flow yield of 6.3%, we are buyers.

居酒屋パブレストラン新宿近くのメモリーレーン路地と自動販売機
Photo by krblokhin/iStock Editorial via Getty Images

Investment thesis

Suntory's (OTCPK:STBFY) strategy of innovating its core drink brands to incorporate value-add health benefits worked during the pandemic. We believe under normalizing market conditions in FY12/2021, earnings growth will be greater than

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1.41K Followers
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