Africa as part of the tailwind - increased beer consumption accompanies growth of the middle class in developing countries.
A wide range of consumer stocks have enjoyed very strong runs in the market, and alcoholic beverage companies like Diageo (NYSE:DEO), Anheuser-Busch InBev (NYSE:BUD), and SABMiller (Nasdaq:SBMRY) have been among the strongest performers. Valuations are starting to look pretty overheated, even allowing for improving global consumer incomes, easing input costs, low rates, and so on. Even so, investors looking for relatively liquid plays on the ongoing growth of emerging economies may want to consider SABMiller for its broad exposure to markets like Africa, Latin America, and China.
SEE: An Evaluation Of Emerging Markets
Bringing The Year To A Respectable Close
Unfortunately, SABMiller is not atypical among non-U.S. companies in eschewing the quarterly reporting format that American investors typically expect. Even so, the company's full-year results came in broadly as expected, particularly given the company's update on revenues and volumes back in April.
Revenue rose 10% for the full fiscal year at the group level, or 7% on an organic basis. Likewise, revenue on an “ex-associates” basis (excluding joint ventures and so on) rose 7% and just slightly (2%) missed the average sell-side estimate. Organic growth was very strong in Africa (up 18%), while South Africa (up 8%) and Latin America (up 7%) were both respectable. Growth in Europe (up 5%), North America (up 2%), and Asia-Pacific (up 3%) was less impressive, particularly the latter two numbers. Importantly, organic growth was relatively balanced between volume, mix, and price, as organic lager volume increased 3%.
