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.
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Canaccord Genuity downgraded the company to a 'sell' rating ahead of its annual results, saying its shares were too expensive.
"We have long been admirers of SABMiller," the broker said in a note earlier this month.
"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.
Thursday May 23th
INTERIMS
Mitchells & Butlers
INTERIM DIVIDEND PAYMENT DATE
Ultimate Finance Group
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Confidence Indicator (EU) (10:00)
Continuing Claims (US) (12:30)
GDP (output, income & expenditure) (09:30)
Initial Jobless Claims (US) (13:30)
FHFA House price index (US) (14:00)
New Homes Sales (US) (15:00)
FINALS
Aveva Group, Dairy Crest Group, Halfords Group, Helical Bar, Investec, Max Property Group, Mothercare, PayPoint, Pennon Group, QinetiQ Group, Quintain Estates & Development, SABMiller, United Utilities Group
AGMS
Afriag, Air China Ltd., Bank of Georgia Holdings, BG Group, Centamin (DI), Dunedin Income Growth Inv Trust, Empresaria Group, F&C Commercial Property Trust Ltd., Guinness Peat Group, Henry Boot, Hydro International, Immupharma, IS Solutions, Keller Group, Leni Gas & Oil, Lombard Medical Technologies, PV Crystalox Solar, Salamander Energy, SIG, Stilo International, Travis Perkins, UBM
UK ECONOMIC ANNOUNCEMENTS
Index of Services (09:30)
FINAL DIVIDEND PAYMENT DATE
Aggreko, Amlin, Hikma Pharmaceuticals, Norsk Hydro ASA, North Midland Construction, Prudential, Reed Elsevier, Total Produce, Zotefoams
Q1
Bridge Energy Asa, Wentworth Resources Ltd (CDI)
RD
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