The world’s second largest beer maker announced that revenue rose by 12% in Africa, 5% in Asia Pacific, 4% in Latin America and 3% in North America. It was also indicated that performance in Europe and North America improved modestly but is expected to remain under pressure.
The announcement was favourably received and the share price rallied at the open of our local bourse, up by over 4%. The London listing of SABMiller was also in positive territory, up 137p to 3175p in early trade today.
The company has outperformed its sector counterparts on the Johannesburg Stock Exchange over the last two years amid good results and the fact that it is a rand hedge stock. In the statement, it was highlighted that depreciation of certain currencies against the US dollar would hurt its reported results going forward.
The chart below highlights the trading activity of the share over the last two years as well as the rally we’ve seen today following the release of the trading statement.