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Unlike the Carlsberg report, ABI’s Q3 gave us something substantial to sink our teeth into. Although volumes failed to meet the street’s expectations, primarily due to the Bud Light backlash, this is not what we would emphasize. The announcement of the share buyback was welcomed by investors. As highlighted in our latest teaser about the company, reverting to a net debt to EBITDA ratio of 3.0x would undoubtedly bring a big smile to investors’ faces.
Companies: AB INBEV (ABI:EBR)Anheuser-Busch InBev SA/NV (ABI:BRU)
AlphaValue
A miss on volume (down organically by -3.4% vs. -2.3% for consensus), but a beat on the bottom line (organic EBITDA up by +4.1% vs. +0.3% expected), while the top line came in roughly in line with market expectations (up by 5.0% organically). The company maintained its FY23 outlook. With the consensus already at the lower end of the company guidance for FY23, this announcement is not a surprise. However, we would appreciate a contraction in the guidance or further information.
No negative surprises from the Q2 results. On the contrary, the expected weak performance in the US after the Bud Light backlash was offset by resilience elsewhere. Pricing was highlighted as a positive factor and the FY guidance was reiterated. Increasing volumes in the US is crucial to boosting profit margins. We want to emphasize once again that, given the recent drop in the share price, investors may view this as a chance to invest in a stock with solid fundamentals.
Notwithstanding the prevailing macro-economic headwinds and associated cost pressures, ABI demonstrated a Q1 23 performance that exceeded expectations. Prices have been growth’s engine driver while volumes are suffering. Management sought to reassure on the Bud Light case.
A mixed set of results marked by a higher decline in volume than had been expected in the Q4. We expect no major earnings increases following this report given that the consensus already stands at the high end of the company’s FY23 guidance range.
ABI outperformed its peers, even beating expectations, and this is rare enough to be noted. Although the environment is not the most conducive, it may be time to recognise the group’s worth.
Once again ABI seems to have been unfairly punished (-4% at midday). The small beat was not “enough” compared with the larger beats of the majority of staples in Q2, coupled with “just” a reiteration of guidance which the market did not like. On our side, we note a good performance in H1 and a group that remains on the course despite the complicated environment.
The results posted a significant beat and the tone was reassuring regarding forward volumes. A positive read-across for the brewers. We reaffirm our positive view on the stock.
Q3 beat on all metrics and FY21 EBITDA guidance upgraded. This publication may be the positive catalyst to drive the share price up (55% upside).
It seems that investors are really determined not to give ABI a chance. The bottom line was below expectations in the first half of the year, but why is this a real surprise in the current inflationary environment? For our part, we still highlight the improving momentum and the attractive valuation.
Strong Q1 FY21 results that were well ahead of consensus and, finally, the appointment of the new CEO have both to be applauded today. Buy recommendation well deserved, while the group is currently trading at a significant discount vs. European Staples and with a stock price having not already reached its pre-COVID-19 level.
A smaller hit to Q4 and FY20 sales expectations, with the performance in H2 quite reassuring. However, the cautious outlook on the FY21 margin slightly darkens the picture.
Q3 with top and bottom line beats, but the emergence of new restrictions and ABI’s decision to forgo the interim dividend slightly darken the picture.
A clear step in the right direction with a significant beat in Q2 and a strong month by month recovery. ABI has been the worst-performing beverage stock in Europe this year, with a valuation which now looks cheap. Still strong upside.
Companies: AB INBEV
Q1 figures broadly in line with expectations. Like its peers, Q2 is expected to be worse when taking into account that lockdowns are in many markets. The signs of recovery in China are, however, encouraging. No major changes expected in our estimates. While we don’t expect a quick return to normal, we certainly see no real downside potential as long as debt markets are supported by central banks.
Research Tree provides access to ongoing research coverage, media content and regulatory news on AB INBEV. We currently have 259 research reports from 6 professional analysts.
The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (
Companies: TXG NDVA TSVT BCOW Z29 TXG NCYT GNS SUN AMS OMG APH EKF EAH IMM AGL DEMG AGY TSTL IPO GDR ETX TRX HVO CTEC AVO OXB DEST VLG IXI VAL INDV AGR AVCT BAI 123F IMCR BCOW
Hardman & Co
Weaker Q4 on sales and margins While sales continued on a positive trend, there was some slowdown in Q4, mainly in pharma technologies (slower increase of utilisation capacity than expected) and in consumer healthcare (tougher comparison). Group sales in Q4 grew 4% YOY vs 20% at 9M. Specialty pharma remained strong, helped by the osteoarticular business, particularly in Sweden and Poland. EBITDA margin decreased 80bp on lower gross margin, while EBIT came down 23% on a EUR1.3m impairment. Net d
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BNP Paribas Exane - Sponsored Research
Cyclical weakness in Carr’s Group’s Speciality Agriculture business has affected the company’s fortunes of late. However, the new management team, a strong net cash balance sheet and a record order book in the Engineering division offer optimism. Operational progress, particularly a reversal of fortunes in Speciality Agriculture, should rebuild confidence and a reduction in the current discount to our view of the underlying value.
Companies: Carr's Group PLC
Edison
NICL's FY23 results showed good progress made as the Packaged business continued to drive growth through product innovation and geographic expansion. Inflationary pressures were largely mitigated and the benefits from the restructuring of the Out of Home (OoH) business are starting to come through, leading to improved profitability. Free cash flow generation was very strong in the year, resulting in an improved net cash position of £67.0m (vs £56.3m at end-FY22). Given the high levels of cash on
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Shore Capital
1st February 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje
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Hybridan
Companies: SGZ TXP CRPR SNX ARBB TON FA/ SBRY MTW BWNG HFG HUW UJO MOTR OBD NRR DEST CBOX SDX EYE FDM EPWN SAVE SCS W7L BRSD ACRL FAR BVC MWE MATD SENX
Companies: Anpario plc
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