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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CONSUMER STAPLES
The largest brewer has reported firm results continuing to justify its tight levels. Margins are sector leading and it's still (slowly) deleveraging - as it has for the last 8 years post ~$100b SABMiller acquisition.
It's done €4b in local markets this year already, €5b including $ issuance. It still has a €555m Sept line coming up but we don't see refi for that as likely. It seems to have targeted € markets - does look cheaper on XCCY but unclear why it didn't refi the £ line that rolled off there - looks cheapest there.
- Q2 Revenue at $15.3b (+2.7%), pricing +3.6%, volumes -0.8%. It says volume dragged down by China and Argentina with growth in most other regions.
- adj. EBITDA was $15.3b (+2.7%) and EBIT at $3.9b (+112%) on a 25.5% margin (+209bps). Its attributing the expansion to cost efficiencies and disciplined overheads.
- Net leverage is at 3.4x down from 3.6x last year but flat vs. end of last year - it tends to be weaker on WC this half but it still managed to deliver FCF of $900m (it says up $1.4b vs. 1H23).
- Again non-alcohol doing well with high-teens growth (we are seeing this across the market). Corona Zero delivered triple-digit growth.
- FY24 guidance left broad; EBITDA growth in-line with MT target for +4-8% and net capex of $4-4.5b (last year was $4.5b). It wasn't mentioned in the presser but it has said in the past it targets net 2x.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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