Tuesday, 29 May 2012 - 20:00
Charts
SABMiller Annual Results ? Expanding Rapidly SABMiller released its annual results for the year ended 31 March 2012 last Thursday, once again reporting strong numbers and managing to grow their volumes despite economies struggling worldwide.
SABMiller is one of the world’s largest brewers, with a global presence in more than 75 countries and a portfolio of more than 200 local and international beer brands including Aguila, Castle, Pilsner Urquell, Peroni, Miller Genuine Draft, and Grolsch. The group also bottles soft drinks, and is one of the world’s largest bottlers of Coca-Cola products.
Group Results
Highlights from the group’s results include a 13% increase in adjusted earnings, resulting in a healthy rise of 12% in adjusted earnings per share. Reported revenue rose by 11%, with organic, constant currency group revenue growth coming to 7%. This second figure excludes the effects of takeovers, mergers, acquisitions, and currency fluctuations and is a more accurate reflection of the revenue generated from SAB’s primary business activities.
Dividends per share for the year grew by 12% to 91 US cents, while the group also managed to improve its free cash flow by 23% to US$ 3,048m. Free cash flow (FCF) is the result of operating cash flows exceeding capital expenditure, and a large amount of FCF will enable an expanding company such as SAB to partake in further M&A activities to the benefit of shareholders.
SAB reported lager volumes at the group level of 229 million hectolitres, which is a 3% increase from last year’s results. The volumes of soft drinks sold grew by 7% to 49 million hectolitres.
A Global Presence
The group currently operates in six regions worldwide and as of late has been actively trying to expand its market share in each region. The breakdown of EBITA (Earnings Before Interest, Taxes, and Amortization) between regions indicates that SAB has managed to achieve substantial organic growth in earnings in all regions excluding Europe and North America.
In Europe lager volumes fell by only 1%, but an increase in raw material costs saw EBITA drop by 9%. Considering the major financial turmoil in Europe, the insignificant decline in volumes emphasizes SAB’s value as a defensive company.
A strategic alliance with the Turkish brewer, Anadolu Efes, was concluded at the start of March 2012, and should have a positive impact on this region’s results in this financial year. SAB exchanged its Russian and Ukrainian beer businesses for a 24% equity stake in the Anadolu Efes group, which will provide exposure to markets in Turkey, Russia, Central Asia, and the Middle East.
Africa is proving to be an exceptional market, with EBITA increasing by 16% as a result of lager volumes growing by 13% and soft drink volumes by 11%. The Group attributes much of its profitability in Africa to the provision of raw materials by local agricultural programs. This includes brewing the world’s first ever cassava-based beer in Mozambique, sourcing advice and input materials from the local community and farmers. A strategic relationship forged with Castel enabled them to take over an existing Castel brewery in Onitsha, Nigeria, whilst production from a brand new brewery being built in Onitsha will start in September 2012. The company sees a lot of potential for further expansion into Nigeria and the rest of Africa, as the per capita beer consumption in Africa is still very low compared with more developed regions.
In Asia Pacific EBITA grew by 30% owing to good growth in both Indian and Chinese markets, with lager volumes increasing by 4% for the region. SAB acquired Foster’s of Australia in December 2011, which provided a foothold in a very stable and profitable Australian beer industry. An early setback occurred when some licensed brands, including Corona, left Foster’s after SAB took over management of the company.
Current Valuation
The company’s shares currently trade on a PE ratio of 23 and a dividend yield of 2.2%, with the forward PE dropping slightly to 19.7. The share price has been a one-way bet since the end of the 2008 financial crisis, with an increase of about 26% in the last 12 months. The consensus view seems to be that the share is too expensive to buy at the moment, but that holders should hang on just a little bit longer to see exactly where SAB’s ambitious expansion plans will take them.
Kind regards,
Cor van Deventer
info@seedinvestments.co.za
www.seedinvestments.co.za
021 9144 966
Source: MoneyWeb, www.sabmiller.com
Tue, 29 May 2012
Top News
South Africa's rand held steady against the dollar on Tuesday after getting a mild lift from better than expected economic growth data for the first quarter, while analysts say the local unit will stay below 8.45 for the short term. Full story
South African stocks ended higher on Tuesday, notching up their second straight day of gains, with MTN Group among the top performers after the wireless phone group said it would continue to return cash to shareholders. Full story |
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An earthquake killed at least 15 people in northern Italy on Tuesday, damaging buildings and spreading fear among thousands of residents living in tents after a similarly strong tremor in the same region flattened their homes nine days ago. Full storyAn attack on the offices of one of the two finalists in Egypt's presidential race has sounded a warning that the last round of voting might spark more violence in a nation polarised by the choice between an Islamist and an ex-general from Hosni Mubarak's era. Full storyWestern powers expelled Syria's envoys on Tuesday in outrage at a massacre of 108 people, almost half of them children, but a defiant President Bashar al-Assad, backed by Russia, showed no sign of yielding to their pressure. Full story |
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Markets | Wall Street rose on Tuesday on
renewed hopes Greece will stay in the euro zone, but indexes cut
gains in half as Facebook. . . Full story | | The euro neared a two-year low
against the dollar on Tuesday as markets fretted about Spain's
troubled banking system while Facebook's slide below. . . Full story | | European stocks ended higher on
Tuesday, hitting a one-week closing high, boosted by talk of
further steps by the European Central Bank to. . . Full story | | Gold fell 1 percent amid heavy
trading volume o n T uesday, as the euro's slide on worries over
Spain's debt prompted investors. . . Full story |
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| Britain's main share index rose
for the fourth consecutive day on Tuesday on hopes of new
measures to tackle Europe's economic crisis, although. . . Full story | | European stocks ended higher on
Tuesday, hitting a one-week closing high, boosted by talk of
further steps by the European Central Bank to. . . Full story | | U.S. stocks rose more than 1
percent on Tuesday on hopes China may unleash more spending
measures and Greek election polls pointing to. . . Full story | | U.S. stocks rose on Tuesday on
hopes China may unleash more spending measures and Greek
election polls pointing to support for pro-bailout parties.. . . Full story |
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SA Business | The economic outlook for South Africa remains modest, with a gradual recovery in domestic demand and supply expected barring further global. . . Full story | | South Africa's economic growth slowed in the first quarter of 2012, hit by a sharp contraction in mining, but manufacturing showed. . . Full story | | South African state logistics group Transnet expects coal transported along its lines to triple to 30 million tonnes within seven years. . . Full story | | South Africa's No.2 drug maker Adcock Ingram posted a 10 percent fall half-year earnings on Tuesday, hit by the loss of. . . Full story |
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| South Africa's Reserve Bank is not unduly alarmed at the rise in unsecured lending but is monitoring the development closely, Deputy. . . Full story | | | | South Africa's AngloGold Ashanti Ltd has agreed to buy the 50 percent of Brazil's Crixas gold mine it does not already. . . Full story | | South Africa's rand ticked up slightly against the dollar on Tuesday although concerns about the banking sectors of some European countries. . . Full story |
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Company News | Datatec announced the allotment of 5 000 ordinary R0.01 shares following the exercise of share options. Application has been made to. . . Full story | | Fiuranium announced that delivery of the information circulars to some South African-based security holders may be interrupted by the ongoing industrial. . . Full story | | On 29 May 2012, Fiuranium received a demand from Olma Investment Group and other dissident shareholders to renegotiate the terms of. . . Full story | | Mvelaserve's shareholders were advised that, primarily due to material once-off net upward adjustments for the year ended 30 June 2011, headline. . . Full story |
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| The management of Adcock presented the group's interim results for the six-month period ended 31 March 2012 at an investor presentation on the 29th of May 2012. This presentation is available. . . Full story | | Notification was given that Stuart Elliot will be stepping down as chief executive
officer ("CEO") of Merafe Resources to pursue his personal interests, with effect
from 31. . . Full story | | Implats release its third quarter production update for the period 1 January to 31 March 2012.
Safety
Three of employees lost their lives at work during the third quarter of FY2012. Two. . . Full story |
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Company Results | Revenue for the year ended 29 February 2012 jumped to R1.8 billion (2011: R1.4 billion). Gross profit increase to R221.7 million. . . Full story | | Revenue increased by 13% to R9.2 billion (R8.1 billion). Operating profit was up 31% to R1.3 billion (R1 billion). Net attributable. . . Full story | | Revenue for the year ended 29 February 2012 lowered to R965.8 million (2011: R1.1 billion). Earnings before interest, taxation, depreciation and. . . Full story | | Revenue increased to R12.1 billion (R9.7 billion). Operating profit rose to R1.9 billion (R1.6 billion). Net attributable profit improved to R889. . . Full story |
World Markets (Spot Prices)
Name | Time | RP | Move | % Move | JSE Overall | 17:00 | 33440.20 | 336.14 | 1.02% | JSE Top 40 | 17:00 | 29531.22 | 341.50 | 1.17% | JSE Gold | 17:00 | 2518.77 | 24.47 | 0.98% | JSE Financial | 17:00 | 25016.91 | 314.68 | 1.27% | JSE Industrial | 17:00 | 37798.40 | 209.21 | 0.56% | JSE Indust 25 | 17:00 | 31866.43 | 193.71 | 0.61% | JSE Resource | 17:00 | 47796.35 | 730.24 | 1.55% | DJ Futures | 19:56 | 12510.00 | 40.00 | 0.32% | DJ Ind | 19:45 | 12533.95 | 79.12 | 0.64% | SP 500 | 20:00 | 1326.45 | 8.63 | 0.65% | Nasdaq | 20:00 | 2855.53 | 18.00 | 0.63% | FTSE 100 | 17:35 | 5391.14 | 34.80 | 0.65% | DAX | 18:06 | 6396.84 | 73.65 | 1.16% | CAC40 | 18:06 | 3084.70 | 41.73 | 1.37% | Nikkei | 08:26 | 8657.08 | 63.93 | 0.74% | Shanghai | 09:26 | 2389.64 | 28.27 | 1.20% | Hang-Seng | 10:26 | 19055.46 | 254.47 | 1.35% | All Ords | 08:43 | 4168.20 | 48.00 | 1.16% | NZSE 50 | 07:46 | 3478.29 | 16.03 | 0.46% |
| | Name | Time | RP | Move | % Move | Gold $ | 19:59 | 1552.95 | -20.80 | -1.32% | Gold R | 20:00 | 12959.68 | -167.97 | -1.28% | Gold R/kg | 20:00 | 416654 | -5581 | -1.32% | Silver $ | 19:59 | 27.8400 | -.5420 | -1.91% | Platinum $ | 19:59 | 1423.00 | -13.00 | -0.91% | Palladium $ | 19:58 | 601.60 | .90 | 0.15% | R157 | 09:02 | 6.38 | .03 | 0.39% | R204 | 17:02 | 7.28 | .03 | 0.41% | Brent Crude | 19:56 | 106.98 | .14 | 0.13% | Rand / Dollar | 19:59 | 8.3452 | 0.0033 | 0.04% | Rand / Pound | 19:55 | 13.0079 | -0.0372 | -0.29% | Rand / Euro | 19:55 | 10.4149 | -0.0436 | -0.42% | Rand / NZD | 19:58 | 6.3523 | -0.0025 | -0.04% | Rand / AUD | 19:55 | 8.2020 | -0.0213 | -0.26% | Yen / Dollar | 19:59 | 79.4780 | 0.0240 | 0.03% | Euro / Dollar | 19:55 | 0.8010 | 0.0039 | 0.49% | Dollar / Euro | 19:59 | 1.2480 | -0.0059 | -0.47% | Pound / Dollar | 19:55 | 0.6397 | 0.0024 | 0.38% |
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The JSE Today
Trading Statistics
Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
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29/05/2012 | 210 | 115 | 78 | 403 | 214,261,117 | R10,436,359,250 | 88803 | 3046434 | 28/05/2012 | 183 | 150 | 74 | 407 | 185,085,324 | R7,772,964,063 | 69520 | 2749589 | 25/05/2012 | 150 | 186 | 83 | 419 | 274,577,227 | R12,224,310,975 | 113195 | 3245483 | 24/05/2012 | 199 | 155 | 65 | 419 | 307,468,436 | R14,957,022,107 | 118438 | 3093003 | 23/05/2012 | 72 | 232 | 57 | 361 | 245,081,235 | R11,454,138,769 | 107672 | 3611339 |
* Includes all listed instruments on the JSE
Index Summary Index Name | RP | Move | % Move | Top 40 | 29,531.22 | 341.50 | 1.17% | Industrial | 37,798.40 | 209.21 | 0.56% | Mid Cap | 47,796.88 | 158.11 | 0.33% | Small Cap | 35,386.21 | 14.17 | 0.04% | Resource 20 | 47,796.35 | 730.24 | 1.55% | Industrial 25 | 31,866.43 | 193.71 | 0.61% | Financial 15 | 9,444.09 | 143.02 | 1.54% | Financial & Ind. 30 | 35,414.53 | 330.08 | 0.94% | All Share | 33,440.20 | 336.14 | 1.02% | Oil & Gas | 27,649.21 | 485.83 | 1.79% | Mining | 30,630.47 | 446.67 | 1.48% | Gold Mining | 2,518.77 | 24.47 | 0.98% | Platinum Mining | 52.41 | .89 | 1.73% | GENERAL MINING | 7,673.32 | 117.10 | 1.55% | Oil & Gas Producers | 14,866.47 | 261.22 | 1.79% | Basic Materials | 26,265.79 | 383.03 | 1.48% | Chemicals | 14,559.33 | 31.20 | 0.21% | Forestry & Paper | 13,783.72 | 302.26 | 2.24% | Industrial Metals | 29,419.13 | 385.66 | 1.33% | Industrials | 32,472.43 | 174.35 | 0.54% | General Industrials | 88.87 | .29 | 0.33% | Consumer Goods | 32,711.60 | 143.72 | 0.44% | Automobiles & Parts | 5,615.86 | -22.64 | -0.40% | Household Goods | 173.52 | -1 | -0.68% | Health Care | 42,406.55 | -350.32 | -0.82% | Beverages | 105.93 | -.94 | -0.88% |
| | Index Name | RP | Move | % Move | Food Producers | 58,350.30 | 810.99 | 1.41% | Personal Goods | 501.38 | 13.98 | 2.87% | Consumer Services | 65,450.73 | 76.65 | 0.12% | General Retailers | 53,826.88 | 280.65 | 0.52% | Travel & Leisure | 3,830.01 | 12.23 | 0.32% | Media | 98.17 | -.47 | -0.48% | Support Services | 2,385.61 | -5.60 | -0.23% | Telecommunications | 67,089.05 | 1140.46 | 1.73% | Financials | 25,016.91 | 314.68 | 1.27% | Banks | 48,417.43 | 937.52 | 1.97% | Non-life Insurance | 42,808.40 | 58.70 | 0.14% | Life Insurance | 19,505.33 | 224.31 | 1.16% | General Financial | 2,289.63 | 25.72 | 1.14% | Technology | 27,911.09 | -134.77 | -0.48% | SHARIAH TOP40 | 2,986.13 | 49 | 1.66% | FTSE/JSE SHARIAH ALL | 3,101.70 | 45 | 1.48% | COAL MINING | 25,327.34 | 591 | 2.39% | FTSE JSE Fledgling | 5,329.49 | 29 | 0.54% | FTSE/JSE Alt X | 1,129.83 | 1 | 0.12% | SA LISTED PROPERTY | 417.21 | | 0.21% | CAPPED PROPERTY | 338.80 | | 0.36% | RESOURCE | 26,394.49 | 397 | 1.53% | DIVIDEND PLUS | 191.79 | 2 | 0.91% | FTSE/JSE RAFI 40 | 6,950.31 | 87 | 1.27% | Capped Top 40 | 15,609.15 | 178 | 1.15% | Capped All Share | 16,919.05 | 169 | 1.01% | JSE TABACO | 5,049.07 | -62 | -1.22% |
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Click here for the Sharenet Index Summary page
Latest Consensus Changes** Code | Company Name | Status | Updated | SLM | SANLAM LIMITED | HOLD | 18 May | INL | INVESTEC LIMITED | BUY | 18 May | HPA | HOSPITALITY PROP FUND A | BUY | 18 May | VPF | VUNANI PROP INV FUND LTD | BUY | 18 May | REB | REBOSIS PROPERTY FUND LTD | BUY | 18 May |
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Results Expected** Expected | Company Name | Fin. Date | 30 May 2012 | BRIKOR | February 2012 (Final) | 30 May 2012 | IDECO | February 2012 (Interim) | 30 May 2012 | IDECOP | February 2012 (Interim) | 30 May 2012 | KEATON | March 2012 (Final) | 30 May 2012 | PLATFIELD | February 2012 (Final) |
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Recent Dividends** Share Name | Dec-Date | LDT | Pay-Date | Amount | TONGAAT | 12-05-28 | 12-07-06 | 12-07-19 | R 1.7000 | ILLOVO | 12-05-28 | 12-06-29 | 12-07-09 | R 0.4300 | REUNERT | 12-05-28 | 12-06-15 | 12-06-25 | R 0.9500 | ISA | 12-05-25 | 12-07-13 | 12-07-23 | R 0.0700 | SABMILLER | 12-05-24 | 12-08-02 | 12-08-17 | R 0.6950 |
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Ex Div** Share Name | Dec-Date | LDT | Pay-Date | Amount | ANGLD | 12-05-10 | 12-05-25 | 12-06-08 | R 1.0000 | OASIS | 12-05-09 | 12-05-25 | 12-06-04 | R 0.4399 | FPT | 12-05-10 | 12-05-25 | 12-06-04 | R 0.2800 | ARROWA | 12-05-09 | 12-05-25 | 12-06-04 | R 0.1500 | BEIGEPREF2 | 12-05-11 | 12-05-25 | 12-06-04 | R 0.1294 |
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Upcoming AGMs** Code | Company Name | Date | Status | MTN | MTN Group Ltd. | 29/05/2012 | Confirmed | GND | Grindrod Ltd. | 30/05/2012 | Confirmed | HWN | Howden Africa Holdings Ltd. | 30/05/2012 | Confirmed | SNT | Santam Ltd. | 30/05/2012 | Confirmed | GNDP | Grindrod Ltd. | 30/05/2012 | Confirmed |
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