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SABMiller to report on Thursday

SABMiller will announce its full-year results for 2013 on Thursday. The consensus is for revenue of $23.51 billion and an operating profit of $4.5 billion. 

SABMiller is trading at 3230 and it recently hit a new high for 2014. The company’s expansion in growth markets like Latin America and Africa is the driving force behind the share price growth. A common theme in the beverage sector is an underperforming European business. Poland and the Czech Republic account for roughly 70% of its European operation, and both nations have been reporting declines in profit.

The focus for Thursday’s announcement will be on how well its South American, Asian and African brands are performing. The businesses have been growing at 12%, 10% and 8% respectively. Growth markets will need to be strong if the company wants to keep takeover attempts at bay.

The stock is up 6.8% since it announced its third-quarter results in January. There has been speculation that Anheuser-Busch InBev will launch a takeover bid for SABMiller. Even if the figures on Thursday fail to impress traders, it could reignite acquisition rumours.

The stock is finding support at the 200-day moving average of 3058. If the full-year figures are good it may set the stock on a path towards to 3500.

SABMiller chart

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