Thursday preview: SABMiller reports full-year results

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.

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.

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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