Our opinion on the current state of AB-INBEV(ANH)
Anheuser-Busch, or AB-InBev (ANH), is the world's largest brewer of beer, operating in both first-world countries and emerging markets. ANH trades on the JSE as ANH, the Brussels Stock Exchange as ABI, and the New York Stock Exchange (NYSE) as BUD. The company announced its intention to list its Asia-Pacific arm on the Hong Kong Stock Exchange to raise approximately $10 billion, with the cash aimed at reducing its debt. The company has well-known brands like Budweiser, Stella Artois, Castle, Becks, and Corona.
After acquiring SA Breweries, AB InBev became four times the size of the world's next largest brewer, Heineken, leaving limited potential for further meaningful acquisitions. Growth from here on must be organic. Due to its American exposure, the company reports quarterly.
In its results for the six months to 30th June 2024, the company reported revenue up 2.7% and underlying earnings per share (EPS) of 90c (US) compared with 72c in the previous period. Headline earnings per share (HEPS) rose to 133c from 100c. The company stated, "Volume growth in our Middle Americas, South America, Europe, and Africa regions was primarily offset by performance in China and Argentina, resulting in an overall volume decline of 0.8%."
From a private investor's perspective, this is a massive international blue-chip share, which is also a good rand-hedge. At current levels, it is trading on a P:E of 20.53, which still looks fairly fully priced to us. Technically, the share was in a downward trend from when it listed on the JSE, and we recommended waiting until it broke up through its long-term downward trendline. That happened on 4th November 2022 at 94065c. It has since moved up to 110639c.
After acquiring SA Breweries, AB InBev became four times the size of the world's next largest brewer, Heineken, leaving limited potential for further meaningful acquisitions. Growth from here on must be organic. Due to its American exposure, the company reports quarterly.
In its results for the six months to 30th June 2024, the company reported revenue up 2.7% and underlying earnings per share (EPS) of 90c (US) compared with 72c in the previous period. Headline earnings per share (HEPS) rose to 133c from 100c. The company stated, "Volume growth in our Middle Americas, South America, Europe, and Africa regions was primarily offset by performance in China and Argentina, resulting in an overall volume decline of 0.8%."
From a private investor's perspective, this is a massive international blue-chip share, which is also a good rand-hedge. At current levels, it is trading on a P:E of 20.53, which still looks fairly fully priced to us. Technically, the share was in a downward trend from when it listed on the JSE, and we recommended waiting until it broke up through its long-term downward trendline. That happened on 4th November 2022 at 94065c. It has since moved up to 110639c.
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