| Wed 9 Nov 2005, 11:27 | | SABMillerÆs earnings expected to rise 13% |
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SABMillerÆs earnings expected to rise 13%
Lynn Bolin
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I-Net Bridge
CAPE TOWN ù SABMiller, the worldÆs second-largest brewer by volume, is expected to post a 13% rise in its adjusted earnings a share to $0,52 from an estimated (restated) $0,46 of a year earlier, for the six months to September, according to a consensus of investment analysts surveyed by I-Net Bridge.
The interim dividend is forecast to rise to $0,13 a share from $0,12 the previous year.
SABMiller will be reporting its interim results tomorrow, using International Financial Reporting Standards (IFRS) for the first time. Its recent acquisition of Bavaria SA, South AmericaÆs second-largest brewer, will not be included in the results as the transaction was completed in October, after period-end.
The groupÆs European operations, meanwhile, should post good volume growth of 5%, while volumes in the Africa and Asia division are forecast to grow by an even better 13% in the first half of the year.
However, it is the Miller Brewing Company operations in the US that will receive the most attention from analysts and investors. MillerÆs US volumes are expected to have fallen 0,3%, and turnover 1%, with lower earnings and margin as well.
This comes amid tough price competition from market leader Anheuser-Busch, which cut prices aggressively during the period to regain market share.
For the 2005-06 financial year as a whole, the consensus of analysts points to a 12% increase in SABMillerÆs earnings share to $1,10.
In rand terms, earnings a share are seen at 734c from 586,5c in 2004-05. The range of eight forecasts is from 709,7c to 760,1c.
