SABMiller up on trading statement

SABMiller released a trading statement with revenue up 4% and noted strong performance across their African businesses for the six months ending September 30. 

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.

SABMiller chart - 17 October

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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