ginopelo
Moving to PeloPonneso
molto interssante, grazie!
Obbligazioni societarie Anheuser-Busch InBev, Heineken, SABMiller, Carlsberg: the breweries.
- Creatore Discussione lorenzo63
- Data di Inizio
molto interssante, grazie!
Imark
Forumer storico
Heineken compra la messicana Femsa con una all shares no cash transaction che valuta il produttore messicano 5,3 mld euro e ne fa il secondo azionista della società olandese. L'accordo è molto interessante in quanto accresce l'esposizione sui mercati emergenti latino americani di H. senza incrementarne il leverage, che resta a quota 3.1x.
Anche dunque un'azienda come H., sebbene attiva in un segmento fortemente aciclico del consumer goods, trova opportuno in questa fase evitare le acquisizioni pagate in cash, che inciderebbero negativamente sul leverage.
Dal WSJ Online...
UPDATE: Heineken To Buy Femsa Beer Ops in All-Share Deal" published at 0922 GMT misstated the year by which the cost synergies will be realized in the 8th paragraph. The error also occured in "=Heineken to acquire FEMSA Beer Ops in All Share Transaction" published at 0820 GMT. The correct version follows
By Anna Marij van der Meulen
Of DOW JONES NEWSWIRES
AMSTERDAM (Dow Jones)--Brewer Heineken NV (HINKY) said Monday it will acquire the beer operations of Fomento Econòmico Mexicano SAB de CV (FMX), or Femsa, through an all-share transaction, valuing Femsa at EUR5.3 billion.
"This is a compelling and significant development for Heineken which will transform our future in the Americas, offering opportunities for accelerating sales in the rapidly growing markets of Brazil and Mexico", said Heineken Chief Executive Jean Francois van Boxmeer.
Investors welcomed the news. At 0910 GMT, Heineken shares were up 4% at EUR34.25.
Van Boxmeer said the percentage of Heineken's earnings before interest, tax and amortisation from emerging markets will rise to 40% from 32% after the deal.
Femsa will hold a 20% stake in Heineken Group, with 12.5% of Heineken NV and 14.9% of Heineken Holding. It will also have the right to appoint two non-executive representatives to Heineken's board, and one of these representatives will also be appointed to the Board of Directors of Heineken Holding.
Femsa will become the second largest shareholder of Heineken NV while Heineken Holding retains its 50% stake in Heineken NV.
Heineken Chief Financial Officer Rene Hooft Graafland said the structure of the all-share deal was at Femsa's request. "Femsa wanted to diversify by reinvesting in a major brewer," he said.
The Dutch brewer estimates that annual cost synergies will amount to EUR150 million by 2013, whereby the deal is earnings per share accretive after two years.
Following the structure of the all share deal, Heineken's net debt to EBITDA ratio remains largely unchanged at 3.1.
Heineken expects to close the transaction in the second quarter of 2010.
Anche dunque un'azienda come H., sebbene attiva in un segmento fortemente aciclico del consumer goods, trova opportuno in questa fase evitare le acquisizioni pagate in cash, che inciderebbero negativamente sul leverage.
Dal WSJ Online...
UPDATE: Heineken To Buy Femsa Beer Ops in All-Share Deal" published at 0922 GMT misstated the year by which the cost synergies will be realized in the 8th paragraph. The error also occured in "=Heineken to acquire FEMSA Beer Ops in All Share Transaction" published at 0820 GMT. The correct version follows
- JANUARY 11, 2010, 4:49 A.M. ET
By Anna Marij van der Meulen
Of DOW JONES NEWSWIRES
AMSTERDAM (Dow Jones)--Brewer Heineken NV (HINKY) said Monday it will acquire the beer operations of Fomento Econòmico Mexicano SAB de CV (FMX), or Femsa, through an all-share transaction, valuing Femsa at EUR5.3 billion.
"This is a compelling and significant development for Heineken which will transform our future in the Americas, offering opportunities for accelerating sales in the rapidly growing markets of Brazil and Mexico", said Heineken Chief Executive Jean Francois van Boxmeer.
Investors welcomed the news. At 0910 GMT, Heineken shares were up 4% at EUR34.25.
Van Boxmeer said the percentage of Heineken's earnings before interest, tax and amortisation from emerging markets will rise to 40% from 32% after the deal.
Femsa will hold a 20% stake in Heineken Group, with 12.5% of Heineken NV and 14.9% of Heineken Holding. It will also have the right to appoint two non-executive representatives to Heineken's board, and one of these representatives will also be appointed to the Board of Directors of Heineken Holding.
Femsa will become the second largest shareholder of Heineken NV while Heineken Holding retains its 50% stake in Heineken NV.
Heineken Chief Financial Officer Rene Hooft Graafland said the structure of the all-share deal was at Femsa's request. "Femsa wanted to diversify by reinvesting in a major brewer," he said.
The Dutch brewer estimates that annual cost synergies will amount to EUR150 million by 2013, whereby the deal is earnings per share accretive after two years.
Following the structure of the all share deal, Heineken's net debt to EBITDA ratio remains largely unchanged at 3.1.
Heineken expects to close the transaction in the second quarter of 2010.
Imark
Forumer storico
Un articolo del WSJ Online che posto perché offre uno spaccato interessante dell'attività di M&A dei colossi della birra...
In particolare, mentre alcuni, ed in particolare Ab-InBev, sono usciti dai mercati est europei o hanno fermato i piani di espansione in quell'area geografica, resta appetita la possibilità di crescere in America latina, e dopo l'operazione di Heineken, potrebbe essere il turno di Ab-InBev di crescere in Messico.
Al contempo, si riduce l'occupazione e/o si cedono asset anche sui mercati europei occidentali, visto come "maturi" e a tasso di crescita modesto.
In ogni caso, la scala delle operazioni sembra essere inferiore rispetto a quanto visto ancora nel recente passato: pesano infatti gli indebitamenti e prudentemente i players preferiscono non incrementare la leva in questa fase.
JANUARY 12, 2010, 5:10 A.M. ET
Beer M&A Likely To Continue, But With Smaller-Scale Deals
By Steve Goldstein & William Spain
Of FINANCIAL NEWS
Heineken NV's (HEIA.AE) acquisition of Fomento Economico Mexicano, or Femsa (FMX), is only the lip of the mug when it comes to mergers and acquisitions in the global beer industry.
The biggest was the 2008 deal that saw InBev take over Anheuser-Busch for more than $50 billion, as well as Heineken and Carlsberg's (CARL-A.KO) joint acquisition of Scottish & Newcastle for $15 billion.
In 2005, a deal worth $3.3 billion created Molson Coors through the merger of Molson and Coors.
And Molson Coors (TAP) got together with SABMiller PLC (SAB.JO) to form MillerCoors, which is a conglomeration of their U.S. interests.
Don't expect the trend to stop, but the complexion of future deals is likely to change.
Euro's post-payroll rally will be briefSlow euro-zone growth, rising fiscal concerns, as well as less reserve diversification by China should ensure that the euro's rally on lower U.S. rate hike expectations doesn't last long.
Currently, the four top players control about 50% of the global market. And in his remarks, Heineken CEO Francois van Boxmeer said it is likely they will soon gobble up another 25% between them.
"The trend toward global consolidation is continuing and there is a significant amount more of it that will happen," said Benj Steinman, editor of Beer Marketer's Insights.
Femsa accounts for only a couple of percentage points in the global market, he noted, so there is plenty of room for more acquisitions.
Grupo Modelo (GMODELO.MX), Femsa's larger Mexican rival, is a natural takeover target for controlling shareholder Anheuser-Busch InBev (BUD), which holds slightly more than 50% of the maker of Corona.
Tom Pirko, president of industry consultancy Bevmark, said "the harvesting is nowhere near done."
This is especially so as companies look to emerging markets for growth. "The focus on future acquisitions will not be in doddering markets like Western Europe but in places like China, India and Brazil," he said.
Among the potential buyers, he speculated, is spirits giant Diageo PLC (DEO), which already owns Guinness.
"They believe in the beer business," Pirko noted. "And everybody knows they are looking."
In addition, "the Japanese are becoming much more aggressive. We think that Kirin is going to try and do something shortly."
However, finding significant, publicly traded brewers may be difficult from here.
For one thing, many of the world's brewers have an element of family ownership. That doesn't make a deal insurmountable -- families control sizeable chunks of both Femsa and Heineken, after all -- but it does throw up obstacles.
"There's nothing completely independent, and of scale, where a firm can waltz in and make a buy," said Simon Hales, analyst at Evolution Securities in London.
A case in point: Turkey's Anadolu Efes is Europe's fifth-largest brewer, and a big player in Russia. But as Evolution's Hales points out, Efes is partly family controlled.
Foster's Group (FGL.AU) is one brewer that's been the target of takeover talk. Molson Coors already holds a minority stake.
In the U.S., the sole remaining publicly traded American-owned brewer is Boston Beer Co. (SAM), maker of the Sam Adams line. While its volume and sales growth has consistently outpaced the industry as a whole, it controls less than 1% of the domestic market and has never shown any interest in selling out to a conglomerate.
From there, the pickings become scarce.
"Everything is kind of protected now," said Evolution's Hales.
Steve Goldstein is MarketWatch's London bureau chief.
In particolare, mentre alcuni, ed in particolare Ab-InBev, sono usciti dai mercati est europei o hanno fermato i piani di espansione in quell'area geografica, resta appetita la possibilità di crescere in America latina, e dopo l'operazione di Heineken, potrebbe essere il turno di Ab-InBev di crescere in Messico.
Al contempo, si riduce l'occupazione e/o si cedono asset anche sui mercati europei occidentali, visto come "maturi" e a tasso di crescita modesto.
In ogni caso, la scala delle operazioni sembra essere inferiore rispetto a quanto visto ancora nel recente passato: pesano infatti gli indebitamenti e prudentemente i players preferiscono non incrementare la leva in questa fase.
JANUARY 12, 2010, 5:10 A.M. ET
Beer M&A Likely To Continue, But With Smaller-Scale Deals
By Steve Goldstein & William Spain
Of FINANCIAL NEWS
Heineken NV's (HEIA.AE) acquisition of Fomento Economico Mexicano, or Femsa (FMX), is only the lip of the mug when it comes to mergers and acquisitions in the global beer industry.
The biggest was the 2008 deal that saw InBev take over Anheuser-Busch for more than $50 billion, as well as Heineken and Carlsberg's (CARL-A.KO) joint acquisition of Scottish & Newcastle for $15 billion.
In 2005, a deal worth $3.3 billion created Molson Coors through the merger of Molson and Coors.
And Molson Coors (TAP) got together with SABMiller PLC (SAB.JO) to form MillerCoors, which is a conglomeration of their U.S. interests.
Don't expect the trend to stop, but the complexion of future deals is likely to change.
Euro's post-payroll rally will be briefSlow euro-zone growth, rising fiscal concerns, as well as less reserve diversification by China should ensure that the euro's rally on lower U.S. rate hike expectations doesn't last long.
Currently, the four top players control about 50% of the global market. And in his remarks, Heineken CEO Francois van Boxmeer said it is likely they will soon gobble up another 25% between them.
"The trend toward global consolidation is continuing and there is a significant amount more of it that will happen," said Benj Steinman, editor of Beer Marketer's Insights.
Femsa accounts for only a couple of percentage points in the global market, he noted, so there is plenty of room for more acquisitions.
Grupo Modelo (GMODELO.MX), Femsa's larger Mexican rival, is a natural takeover target for controlling shareholder Anheuser-Busch InBev (BUD), which holds slightly more than 50% of the maker of Corona.
Tom Pirko, president of industry consultancy Bevmark, said "the harvesting is nowhere near done."
This is especially so as companies look to emerging markets for growth. "The focus on future acquisitions will not be in doddering markets like Western Europe but in places like China, India and Brazil," he said.
Among the potential buyers, he speculated, is spirits giant Diageo PLC (DEO), which already owns Guinness.
"They believe in the beer business," Pirko noted. "And everybody knows they are looking."
In addition, "the Japanese are becoming much more aggressive. We think that Kirin is going to try and do something shortly."
However, finding significant, publicly traded brewers may be difficult from here.
For one thing, many of the world's brewers have an element of family ownership. That doesn't make a deal insurmountable -- families control sizeable chunks of both Femsa and Heineken, after all -- but it does throw up obstacles.
"There's nothing completely independent, and of scale, where a firm can waltz in and make a buy," said Simon Hales, analyst at Evolution Securities in London.
A case in point: Turkey's Anadolu Efes is Europe's fifth-largest brewer, and a big player in Russia. But as Evolution's Hales points out, Efes is partly family controlled.
Foster's Group (FGL.AU) is one brewer that's been the target of takeover talk. Molson Coors already holds a minority stake.
In the U.S., the sole remaining publicly traded American-owned brewer is Boston Beer Co. (SAM), maker of the Sam Adams line. While its volume and sales growth has consistently outpaced the industry as a whole, it controls less than 1% of the domestic market and has never shown any interest in selling out to a conglomerate.
From there, the pickings become scarce.
"Everything is kind of protected now," said Evolution's Hales.
Steve Goldstein is MarketWatch's London bureau chief.
Imark
Forumer storico
Un breve report di Fitch sul mercato globale della birra focalizza sulla circostanza per cui, nell'intento di evitare la crescita dell'indebitamento, una ulteriore fase di espansione dei processi di concentrazione in atto sembra caratterizzato da acquisizioni in cui il pagamento in equity assume un ruolo significativo...
Fitch: European Brewers Shifting to Equity Funding for Acquisitions
12 Jan 2010 6:57 AM (EST)
Fitch Ratings-London-12 January 2010:
Fitch Ratings says today that Heineken's acquisition of Mexican brewer, FEMSA Cerveza (FEMSA), for EUR5.3bn could mark the beginning of a new phase of consolidation activity by European-based brewers to include more creditor-friendly funding structures. Fitch notes that Heineken's inclusion of a large equity component (over 70% of the acquisition price) in its offer follows SABMiller's ('BBB+'/Stable) fully equity-funded USD1.1bn minority buy-out of previously 72%-owned Polish brewer, Kompania Piwowarska, in mid-2009.
"The pressure to find alternative cash flow and profit growth avenues, as organic growth dries up, is a major force in driving the resumption of consolidation for global brewing. However, bank covenant restrictions and low investment grade rating profiles are causing a step up of equity funding to finance acquisitions," said Giulio Lombardi, Senior Director in Fitch's EMEA Retail, Leisure and Consumer Products Group.
For Heineken a fully debt-funded acquisition of FEMSA was not feasible due to its debt incurrence restriction covenant of no more than 3.5x net debt/EBITDA. Two more major brewers, Carlsberg Breweries (CB) ('BBB-'/Stable) and AB InBev also have debt covenant restrictions included in loan facilities incurred in previous acquisitions made in 2008. CB, which acquired Scottish & Newcastle jointly with Heineken in 2008 for close to GBP8bn, is required to maintain net debt/ EBITDA below 4x in FY09. AB InBev, which acquired Anheuser Busch for USD52bn in 2008, is required to gradually reduce net debt/EBITDA to below 3.5x. The two acquisition facilities do not mature before 2012 and 2013 respectively. Therefore, while AB InBev has been selling assets heavily in 2009 and is not expected to be in an acquisitive mode for at least another year, CB, which Fitch believes may be looking at continuing its expansion in Asia, will need to maintain a disciplined approach to acquisitions in order to remain in compliance with its covenants and rating profile.
By contrast, SABMiller, with lease-adjusted leverage of 2x at FYE09, retains financial flexibility that could be used for acquisitions. Its major presence in growing emerging markets also reduces the need to pay high multiples for acquisitions.
Fitch estimates that synergies from acquisitions and cuts in capex and working capital have allowed European-based brewers AB InBev, Carlsberg Breweries, Heineken and Anadolu Efes ('BB+'/Negative) to deliver strong profit growth and cash flow generation in 2009 and to de-leverage in line with or ahead of targets made before the inception of the crisis.
Nevertheless, as these acquisition synergies run their course, alcohol excise duties are raised in certain markets and consumers remain cautious, brewers are looking for new acquisitions to drive expansion.
Although the beer industry is already at an advanced stage of consolidation (approximately 70% of global volumes, excluding the large Chinese market, are concentrated in the top four players), a few companies, mainly characterised by strong regional shares in fairly protected or high-growth markets, are still independent, potentially representing attractive acquisition targets for the four European-based players and emerging Japanese leaders, Kirin-Suntory and Asahi.
For instance, Foster's Group Limited ('BBB'/Stable) (market capitalisation of approximately USD10bn) which enjoys a healthy EBITDA margin thanks to its co-leader position in the duopolistic Australian market is viewed as a potential acquisition target.
Fitch: European Brewers Shifting to Equity Funding for Acquisitions
12 Jan 2010 6:57 AM (EST)
Fitch Ratings-London-12 January 2010:
Fitch Ratings says today that Heineken's acquisition of Mexican brewer, FEMSA Cerveza (FEMSA), for EUR5.3bn could mark the beginning of a new phase of consolidation activity by European-based brewers to include more creditor-friendly funding structures. Fitch notes that Heineken's inclusion of a large equity component (over 70% of the acquisition price) in its offer follows SABMiller's ('BBB+'/Stable) fully equity-funded USD1.1bn minority buy-out of previously 72%-owned Polish brewer, Kompania Piwowarska, in mid-2009.
"The pressure to find alternative cash flow and profit growth avenues, as organic growth dries up, is a major force in driving the resumption of consolidation for global brewing. However, bank covenant restrictions and low investment grade rating profiles are causing a step up of equity funding to finance acquisitions," said Giulio Lombardi, Senior Director in Fitch's EMEA Retail, Leisure and Consumer Products Group.
For Heineken a fully debt-funded acquisition of FEMSA was not feasible due to its debt incurrence restriction covenant of no more than 3.5x net debt/EBITDA. Two more major brewers, Carlsberg Breweries (CB) ('BBB-'/Stable) and AB InBev also have debt covenant restrictions included in loan facilities incurred in previous acquisitions made in 2008. CB, which acquired Scottish & Newcastle jointly with Heineken in 2008 for close to GBP8bn, is required to maintain net debt/ EBITDA below 4x in FY09. AB InBev, which acquired Anheuser Busch for USD52bn in 2008, is required to gradually reduce net debt/EBITDA to below 3.5x. The two acquisition facilities do not mature before 2012 and 2013 respectively. Therefore, while AB InBev has been selling assets heavily in 2009 and is not expected to be in an acquisitive mode for at least another year, CB, which Fitch believes may be looking at continuing its expansion in Asia, will need to maintain a disciplined approach to acquisitions in order to remain in compliance with its covenants and rating profile.
By contrast, SABMiller, with lease-adjusted leverage of 2x at FYE09, retains financial flexibility that could be used for acquisitions. Its major presence in growing emerging markets also reduces the need to pay high multiples for acquisitions.
Fitch estimates that synergies from acquisitions and cuts in capex and working capital have allowed European-based brewers AB InBev, Carlsberg Breweries, Heineken and Anadolu Efes ('BB+'/Negative) to deliver strong profit growth and cash flow generation in 2009 and to de-leverage in line with or ahead of targets made before the inception of the crisis.
Nevertheless, as these acquisition synergies run their course, alcohol excise duties are raised in certain markets and consumers remain cautious, brewers are looking for new acquisitions to drive expansion.
Although the beer industry is already at an advanced stage of consolidation (approximately 70% of global volumes, excluding the large Chinese market, are concentrated in the top four players), a few companies, mainly characterised by strong regional shares in fairly protected or high-growth markets, are still independent, potentially representing attractive acquisition targets for the four European-based players and emerging Japanese leaders, Kirin-Suntory and Asahi.
For instance, Foster's Group Limited ('BBB'/Stable) (market capitalisation of approximately USD10bn) which enjoys a healthy EBITDA margin thanks to its co-leader position in the duopolistic Australian market is viewed as a potential acquisition target.
Imark
Forumer storico
In questi giorni sono arrivate le trimestrali di alcune importanti breweries... il tratto comune, se si guarda al forecast per il 2010, è che i volumi consumati si prevedono ancora in calo e le case sono intente ad attuare una nuova serie di tagli ai costi per tenere stabili gli utili nonostante il calo del fatturato, visto peraltro che la situazione attuale non consente di operare sulla leva dei prezzi, specie nei mercati USA ed Europeo, se non in misura marginale e selettiva.
Gli incrementi dei prezzi da praticare sono previsti infatti inferiori rispetto a quanto fatto nel 2009, in cui invece la risalita dei prezzi aveva consentito di elevare il livello degli utili nonostante il calo dei volumi.
Heineken e Carlsberg non hanno tuttavia indicato target precisi per la riduzione dei costi nel biennio a venire. Un analista sentito dal DJN stima possa trattarsi di circa 200 mln euro per entrambe le società, da conseguire entro il 2010-11 per Carlsberg, già nel 2010 per Heineken.
By Anna Marij van der Meulen
Of DOW JONES NEWSWIRES
AMSTERDAM (Dow Jones)--World brewers will continue to cut costs this year in a bid to maintain profits, with Carlsberg A/S (CARL-A.KO) and Heineken NV (HEIA.AE) Tuesday both predicting further declines in beer volumes.
Heineken, the world's third largest brewer by revenue, said "the global economic environment will continue to lead to lower beer consumption, particulary in the U.S. and Europe, and that price increases in 2010 will be below levels of 2009."
Carlsberg, the maker of Tuborg, Carlsberg and Kronenbourg, in a similar vein, expects a slight decline in Northern and Western Europe and a low double digit decline in the Russian market.
Despite a volume decline, both brewers managed to increase their full year profit, as they managed to offset lower sales with higher prices. The companies also made savings thanks to respective cost-cutting programs, which analysts say will likely boost profitability in 2010.
ING Commercial Banking analyst Gerard Rijk said he estimates Carlsberg can save DKK1.3 billion ($238 million) in the period 2010-2011, while Heineken can save EUR200 million in 2010.
Heineken did not want to specify a cost savings target for 2010 and refrained from an outlook, but said it will continue to deliver significant savings under its cost management program, which runs from 2009 to 2011. Carlsberg, meanwhile, said it expects net profit growth of more than 20% in 2010 and said it will continue with operational and efficiency improvements.
The brewers also gained from synergies after teaming up to buy Scottish and Newcastle for a total of EUR10.34 billion in 2008, whereby the Russian and Eastern European activities went to Carlsberg and Heineken took control of operations in the U.K., Ireland, Portugal, Finland, Belgium, the U.S. and India.
Anheuser-Busch InBev NV (BUD, ABI.BT), also said earlier this month it will restructure its sales and marketing departments at its U.S. unit, continuing an efficiency drive that has led the world's biggest brewer by sales to shed more than 1,400 of its U.S. employees since InBev NV acquired Anheuser-Busch Cos. in 2008.
Russian beer consumption has increased rapidly in the past few years but the economic downturn, there as elsewhere, has hit consumer spending and sent beer volumes lower. Starting New Year's Day, Russian beer taxes tripled. Carlsberg expects earnings in the first half of 2010 to be affected by the duty increase, leading to a low double digit decline in the Russian beer market in 2010, but then to recover in the second half of the year as customers get used to the higher prices.
These comments were echoed by Heineken. However, Heineken's exposure to Russia is limited so the impact on profit is "negligible," Heineken's Chief Financial Officer Renee Hooft Graafland said.
Carlsberg said it expects markets in Asia to grow, but this accounted only for 7% of operating profit in 2009.
Heineken's presence in mature markets such as Western Europe and the U.S. is also significant, but it will decrease this exposure after it finalizes the acquisition of Fomento Economico Mexicano SAB de CV (FMX), or Femsa, in the second quarter of this year.
Heineken Chief Executive Jean Francois van Boxmeer said in early January the percentage of Heineken's earnings before interest and taxes, or EBIT, from emerging markets will rise to 40% from 32% after the deal.
When asked if the soccer World Cup, which will be held in South Africa this summer, will boost earnings for Heineken, Hooft Graafland replied that this very much depends on which team does well. "If the Dutch or the English do well in the tournament, this would definitely help our sales," he added.
Heineken's net profit rose to EUR1.02 billion from EUR209 million in 2008, when earnings were hit by EUR757 million financing costs related to the acquisition of Scottish & Newcastle in 2008. Volumes for 2009 were down 5.4%, with the greatest decline in Central and Eastern Europe, particularly in Russia and Poland, resulting in a 2.7% increase in full year sales of EUR14.7 billion.
Carlsberg posted a net profit of DKK383 million for the three months to Dec. 31, up from DKK111 million a year earlier when the company was also hit by charges relating to the acquisition of Scottish & Newcastle. Carlsberg's fourth-quarter sales fell 6% to DKK13.62 billion from DKK14.52 billion.
Gli incrementi dei prezzi da praticare sono previsti infatti inferiori rispetto a quanto fatto nel 2009, in cui invece la risalita dei prezzi aveva consentito di elevare il livello degli utili nonostante il calo dei volumi.
Heineken e Carlsberg non hanno tuttavia indicato target precisi per la riduzione dei costi nel biennio a venire. Un analista sentito dal DJN stima possa trattarsi di circa 200 mln euro per entrambe le società, da conseguire entro il 2010-11 per Carlsberg, già nel 2010 per Heineken.
- FEBRUARY 23, 2010, 10:57 A.M. ET
By Anna Marij van der Meulen
Of DOW JONES NEWSWIRES
AMSTERDAM (Dow Jones)--World brewers will continue to cut costs this year in a bid to maintain profits, with Carlsberg A/S (CARL-A.KO) and Heineken NV (HEIA.AE) Tuesday both predicting further declines in beer volumes.
Heineken, the world's third largest brewer by revenue, said "the global economic environment will continue to lead to lower beer consumption, particulary in the U.S. and Europe, and that price increases in 2010 will be below levels of 2009."
Carlsberg, the maker of Tuborg, Carlsberg and Kronenbourg, in a similar vein, expects a slight decline in Northern and Western Europe and a low double digit decline in the Russian market.
Despite a volume decline, both brewers managed to increase their full year profit, as they managed to offset lower sales with higher prices. The companies also made savings thanks to respective cost-cutting programs, which analysts say will likely boost profitability in 2010.
ING Commercial Banking analyst Gerard Rijk said he estimates Carlsberg can save DKK1.3 billion ($238 million) in the period 2010-2011, while Heineken can save EUR200 million in 2010.
Heineken did not want to specify a cost savings target for 2010 and refrained from an outlook, but said it will continue to deliver significant savings under its cost management program, which runs from 2009 to 2011. Carlsberg, meanwhile, said it expects net profit growth of more than 20% in 2010 and said it will continue with operational and efficiency improvements.
The brewers also gained from synergies after teaming up to buy Scottish and Newcastle for a total of EUR10.34 billion in 2008, whereby the Russian and Eastern European activities went to Carlsberg and Heineken took control of operations in the U.K., Ireland, Portugal, Finland, Belgium, the U.S. and India.
Anheuser-Busch InBev NV (BUD, ABI.BT), also said earlier this month it will restructure its sales and marketing departments at its U.S. unit, continuing an efficiency drive that has led the world's biggest brewer by sales to shed more than 1,400 of its U.S. employees since InBev NV acquired Anheuser-Busch Cos. in 2008.
Russian beer consumption has increased rapidly in the past few years but the economic downturn, there as elsewhere, has hit consumer spending and sent beer volumes lower. Starting New Year's Day, Russian beer taxes tripled. Carlsberg expects earnings in the first half of 2010 to be affected by the duty increase, leading to a low double digit decline in the Russian beer market in 2010, but then to recover in the second half of the year as customers get used to the higher prices.
These comments were echoed by Heineken. However, Heineken's exposure to Russia is limited so the impact on profit is "negligible," Heineken's Chief Financial Officer Renee Hooft Graafland said.
Carlsberg said it expects markets in Asia to grow, but this accounted only for 7% of operating profit in 2009.
Heineken's presence in mature markets such as Western Europe and the U.S. is also significant, but it will decrease this exposure after it finalizes the acquisition of Fomento Economico Mexicano SAB de CV (FMX), or Femsa, in the second quarter of this year.
Heineken Chief Executive Jean Francois van Boxmeer said in early January the percentage of Heineken's earnings before interest and taxes, or EBIT, from emerging markets will rise to 40% from 32% after the deal.
When asked if the soccer World Cup, which will be held in South Africa this summer, will boost earnings for Heineken, Hooft Graafland replied that this very much depends on which team does well. "If the Dutch or the English do well in the tournament, this would definitely help our sales," he added.
Heineken's net profit rose to EUR1.02 billion from EUR209 million in 2008, when earnings were hit by EUR757 million financing costs related to the acquisition of Scottish & Newcastle in 2008. Volumes for 2009 were down 5.4%, with the greatest decline in Central and Eastern Europe, particularly in Russia and Poland, resulting in a 2.7% increase in full year sales of EUR14.7 billion.
Carlsberg posted a net profit of DKK383 million for the three months to Dec. 31, up from DKK111 million a year earlier when the company was also hit by charges relating to the acquisition of Scottish & Newcastle. Carlsberg's fourth-quarter sales fell 6% to DKK13.62 billion from DKK14.52 billion.
Imark
Forumer storico
Più in dettaglio, i risultati di Heineken...
FEBRUARY 23, 2010, 10:54 A.M. ET
UPDATE: Heineken '09 Pft Helped By Cost Cuts, Cautious On '10
By Anna Marij van der Meulen
Of DOW JONES NEWSWIRES
AMSTERDAM (Dow Jones)--Brewer Heineken NV (HEIA.AE) Tuesday said profits came in line with expectations in 2009, helped by cost cuts, and as it managed to offset lower volumes with higher prices, but struck a cautious tone for 2010.
"The global economic environment will continue to lead to lower beer consumption and down-trading in a number of regions in 2010," Heineken said.
It added that price increases will be well below the 2009 level as it expects a fall in raw material costs and because it already increased prices across markets in 2009. The fall in raw material costs will, however, be offset by higher energy costs and an increase in advertising and marketing costs, the world's third largest brewer by revenue said.
Profit before exceptionals and amortization--a figure closely watched by analysts--grew to EUR1.06 billion from EUR1.01 billion in 2008, supported by EUR155 million in cost savings from the Total Cost Management Program as well as price increases. Six analysts surveyed by Dow Jones Newswires expected a figure of EUR1.04 billion. Analysts say 2009 results were in line and contain no surprises.
Heineken did not want to specify a cost savings target for 2010, but said it will continue to deliver significant cost savings under its cost management program, which runs from 2009 to 2011.
Net profit rose to EUR1.02 billion from EUR209 million in 2008, when earnings were hit by EUR757 million financing costs related to the acquisition of U.K. peer Scottish & Newcastle in 2008.
Volumes for 2009 were down 5.4%, with the greatest decline in Central and Eastern Europe, particularly in Russia and Poland, resulting in a 2.7% increase in full year sales of EUR14.7 billion. The volume decline could be offset by higher prices and improved sales mix.
The Americas saw an 8.7% decline in volumes, especially due to a decline in the import segment and price competition.
Heineken is being hard hit by the economic downturn and a drop in beer consumption in its mature markets, but is expected to decrease its exposure in mature markets after it finalizes the acquisition of Fomento Economico Mexicano SAB de CV (FMX), or Femsa, in the second quarter of this year.
Chief Executive Jean Francois van Boxmeer said in early January that the percentage of Heineken's earnings before interest and taxes, or EBIT, from emerging markets will rise to 40% from 32% after the deal.
The Amsterdam-based brewer remains committed to reducing its net debt/earnings before interest, tax, depreciation and amortization ratio to below 2.5. At the end of 2009 this ratio stood at 2.6, from 3.3 at the end of 2008.
Heineken shares are up EUR0.78, or 2.2%, at EUR35.81 at 0850 GMT.
FEBRUARY 23, 2010, 10:54 A.M. ET
UPDATE: Heineken '09 Pft Helped By Cost Cuts, Cautious On '10
By Anna Marij van der Meulen
Of DOW JONES NEWSWIRES
AMSTERDAM (Dow Jones)--Brewer Heineken NV (HEIA.AE) Tuesday said profits came in line with expectations in 2009, helped by cost cuts, and as it managed to offset lower volumes with higher prices, but struck a cautious tone for 2010.
"The global economic environment will continue to lead to lower beer consumption and down-trading in a number of regions in 2010," Heineken said.
It added that price increases will be well below the 2009 level as it expects a fall in raw material costs and because it already increased prices across markets in 2009. The fall in raw material costs will, however, be offset by higher energy costs and an increase in advertising and marketing costs, the world's third largest brewer by revenue said.
Profit before exceptionals and amortization--a figure closely watched by analysts--grew to EUR1.06 billion from EUR1.01 billion in 2008, supported by EUR155 million in cost savings from the Total Cost Management Program as well as price increases. Six analysts surveyed by Dow Jones Newswires expected a figure of EUR1.04 billion. Analysts say 2009 results were in line and contain no surprises.
Heineken did not want to specify a cost savings target for 2010, but said it will continue to deliver significant cost savings under its cost management program, which runs from 2009 to 2011.
Net profit rose to EUR1.02 billion from EUR209 million in 2008, when earnings were hit by EUR757 million financing costs related to the acquisition of U.K. peer Scottish & Newcastle in 2008.
Volumes for 2009 were down 5.4%, with the greatest decline in Central and Eastern Europe, particularly in Russia and Poland, resulting in a 2.7% increase in full year sales of EUR14.7 billion. The volume decline could be offset by higher prices and improved sales mix.
The Americas saw an 8.7% decline in volumes, especially due to a decline in the import segment and price competition.
Heineken is being hard hit by the economic downturn and a drop in beer consumption in its mature markets, but is expected to decrease its exposure in mature markets after it finalizes the acquisition of Fomento Economico Mexicano SAB de CV (FMX), or Femsa, in the second quarter of this year.
Chief Executive Jean Francois van Boxmeer said in early January that the percentage of Heineken's earnings before interest and taxes, or EBIT, from emerging markets will rise to 40% from 32% after the deal.
The Amsterdam-based brewer remains committed to reducing its net debt/earnings before interest, tax, depreciation and amortization ratio to below 2.5. At the end of 2009 this ratio stood at 2.6, from 3.3 at the end of 2008.
Heineken shares are up EUR0.78, or 2.2%, at EUR35.81 at 0850 GMT.
Imark
Forumer storico
E Carlsberg
(Adds analyst comment, detail)
By Karl Bruze
Of DOW JONES NEWSWIRES
STOCKHOLM (Dow Jones)--Danish brewer Carlsberg A/S (CARL-A.KO) Tuesday posted an increase in fourth-quarter net profit and gave a bullish outlook for 2010, expecting net profit growth of more than 20% and operating profit in line with 2009.
"Working capital improvement will continue to be a key focus area," Carlsberg said.
The maker of Tuborg, Carlsberg and Kronenbourg will increase investments in brands and channel marketing, and continue implementation of operational and capital efficiency improvements. Carlsberg said there are opportunities to further strengthen its market position in several key markets, including Russia, and that it expects continued market growth in Asia.
At 1014 GMT, the stock was up 7.6% at DKK413.40, outperforming a flat reading in the broader Copenhagen market. During the last 12 months, Carlsberg's shares have risen 99%, outperforming the 43% gain in the wider Copenhagen market.
The Copenhagen-based company's exposure to Russia increased substantially after it bought part of U.K.-based rival Scottish & Newcastle in 2008, thereby gaining full control of eastern European brewer Baltic Beverages Holding, which had previously been a joint venture between the two companies.
Russian beer consumption has increased rapidly in the past few years but the economic downturn, there as elsewhere, has hit consumer spending and sent beer volumes lower. Starting New Year's Day, Russian beer taxes tripled. Carlsberg expects earnings in the first half of 2010 to be affected by the duty increase, but then to recover in the second half of the year as customers get used to the higher prices.
Carlsberg posted a net profit of DKK383 million ($70.11 million) for the three months to Dec. 31, up from DKK111 million a year earlier when the company was hit by charges relating to the acquisition of Scottish & Newcastle. Still, net profit in the past quarter fell short of analysts' expectations for DKK554.7 million, as Carlsberg experienced higher than expected exceptional costs of DKK324 million.
Carlsberg's fourth-quarter sales fell 6% to DKK13.62 billion from DKK14.52 billion, missing expectations for DKK13.93 billion. Operating profit before special items rose to DKK1.64 billion from DKK1.39 billion, above market expectations for DKK1.36 billion.
Analyst Morten Imsgard at Sydbank said the fourth-quarter result was "pretty much in line" with what had been expected, and noted that the company showed a strong result in Eastern Europe and "a bit weaker" result in Western Europe.
The operating margin for Eastern Europe rose to 26.6% from 17.3%, while decreasing to 7.8% from 9.5% for Northern and Western Europe.
Imsgard, who has a neutral rating for the shares, added that another positive was the reduced debt, following a "very strong cash-flow."
"The guidance is as expected," Imsgard said.
Due to Russian stockbuilding in the fourth quarter, and subsequent destocking in the first quarter 2010, Carlsberg's first quarter 2010 and 2010 full-year operating profit will be reduced by around DKK300 million, the company said.
While the Russian market declined by around 10% in 2009, Carlsberg improved its market share from 38.8% to 40.6%.
The company proposed an unchanged annual dividend of DKK3.50 a share for 2009.
- FEBRUARY 23, 2010, 5:43 A.M. ET
(Adds analyst comment, detail)
By Karl Bruze
Of DOW JONES NEWSWIRES
STOCKHOLM (Dow Jones)--Danish brewer Carlsberg A/S (CARL-A.KO) Tuesday posted an increase in fourth-quarter net profit and gave a bullish outlook for 2010, expecting net profit growth of more than 20% and operating profit in line with 2009.
"Working capital improvement will continue to be a key focus area," Carlsberg said.
The maker of Tuborg, Carlsberg and Kronenbourg will increase investments in brands and channel marketing, and continue implementation of operational and capital efficiency improvements. Carlsberg said there are opportunities to further strengthen its market position in several key markets, including Russia, and that it expects continued market growth in Asia.
At 1014 GMT, the stock was up 7.6% at DKK413.40, outperforming a flat reading in the broader Copenhagen market. During the last 12 months, Carlsberg's shares have risen 99%, outperforming the 43% gain in the wider Copenhagen market.
The Copenhagen-based company's exposure to Russia increased substantially after it bought part of U.K.-based rival Scottish & Newcastle in 2008, thereby gaining full control of eastern European brewer Baltic Beverages Holding, which had previously been a joint venture between the two companies.
Russian beer consumption has increased rapidly in the past few years but the economic downturn, there as elsewhere, has hit consumer spending and sent beer volumes lower. Starting New Year's Day, Russian beer taxes tripled. Carlsberg expects earnings in the first half of 2010 to be affected by the duty increase, but then to recover in the second half of the year as customers get used to the higher prices.
Carlsberg posted a net profit of DKK383 million ($70.11 million) for the three months to Dec. 31, up from DKK111 million a year earlier when the company was hit by charges relating to the acquisition of Scottish & Newcastle. Still, net profit in the past quarter fell short of analysts' expectations for DKK554.7 million, as Carlsberg experienced higher than expected exceptional costs of DKK324 million.
Carlsberg's fourth-quarter sales fell 6% to DKK13.62 billion from DKK14.52 billion, missing expectations for DKK13.93 billion. Operating profit before special items rose to DKK1.64 billion from DKK1.39 billion, above market expectations for DKK1.36 billion.
Analyst Morten Imsgard at Sydbank said the fourth-quarter result was "pretty much in line" with what had been expected, and noted that the company showed a strong result in Eastern Europe and "a bit weaker" result in Western Europe.
The operating margin for Eastern Europe rose to 26.6% from 17.3%, while decreasing to 7.8% from 9.5% for Northern and Western Europe.
Imsgard, who has a neutral rating for the shares, added that another positive was the reduced debt, following a "very strong cash-flow."
"The guidance is as expected," Imsgard said.
Due to Russian stockbuilding in the fourth quarter, and subsequent destocking in the first quarter 2010, Carlsberg's first quarter 2010 and 2010 full-year operating profit will be reduced by around DKK300 million, the company said.
While the Russian market declined by around 10% in 2009, Carlsberg improved its market share from 38.8% to 40.6%.
The company proposed an unchanged annual dividend of DKK3.50 a share for 2009.
Imark
Forumer storico
Arrivata nei giorni scorsi anche la trimestrale di AB Inbev... anche questo produttore pronostica un mercato all'insegna della debolezza nel 2010, senza ripresa nei volumi del venduto, sebbene dovrebbero escludersi anche cali sostanziali.
Per gli USA addirittura il pronostico è di debolezza che si protrae per "alcuni anni", ma per l'Europa occidentale è anche più pessimistico. Negli USA i volumi 2009 sono scesi del 2,1% y-o-y, del 2,4% in Cina, del 4,9% in Europa occidentale, di oltre il 13% in Russia.
Prioritario per la società il tema della riduzione del debito: il leverage, oggi a quota 3,7x era a 5x ad inizio 2009 ed è stato ridotto in virtù delle dismissioni di cui abbiamo dato conto nel 3d. AB Inbev sarebbe intenzionata a ridurlo nel tempo fino ad un target di 2x, anche se viene difficile, IMHO, postulare una riduzione senza ulteriori dismissioni di asset.
FT.com / UK - AB InBev priority is debt reduction
AB InBev sees flat beer sales
By AOIFE WHITE (AP) – 4 days ago
BRUSSELS — The world's largest brewer and maker of Budweiser reported Thursday a fourth quarter profit of $1.28 billion, helped by cost cuts and price hikes, but said global beer sales were stagnant and forecast no rebound in 2010.
Anheuser-Busch InBev SA sold 0.7 percent less beer and soft drinks in 2009 during the economic downturn and says that global beer demand is neither growing nor shrinking.
"We see no improvement in the operating environment today," the company's chief financial officer Felipe Dutra told reporters.
Other brewers Heineken and SABMiller have also reported flat or falling beer sales for some or all of last year.
AB InBev chief executive Carlos Brito said he was hopeful that lower sales across the world were a "one-year event" triggered by the financial crisis and that emerging economies would return to growth, even if developed markets, above all in western Europe, remain in decline.
"We think that this thing will be sorted out and when it's done, markets will at some point go back to their original trend," he said. "We continue to be very bullish in the U.S. but recognize that until the economy gets better, we're going to have some tough years."
He was less optimistic about Europe, where people are buying fewer alcoholic drinks, turning from beer to other products and visiting bars less often, saying "as an industry, we haven't really cracked that code."
In the United States, the company's biggest market, beer volume sales were down 2.1 percent last year — even though revenues grew 0.6 percent. Volumes were also down by 13.1 percent in Russia, 4.9 percent in western Europe and 2.4 percent in China.
Despite the economic downturn, America's topselling beer Budweiser is gaining ground in new markets, the company said. Sales of the beer grew 12.1 percent in China last year and Brito said it is "growing nicely" in Britain and parts of South America.
"It's a brand that we continue to intend to push in different markets, it's amazing to see how the brand is recognized by consumers just by the very fact of its sponsorships ... the Olympics, the World Cup and a lot of the American sports that are seen and watched more and more around the world," he said.
Brito said the company was preparing for a surge in beer demand for this summer's soccer World Cup: "It's a beer event and that's why we sponsor it."
AB InBev said the $1.28 billion profit for the three months ending Dec. 31 was some 17 percent lower than the third quarter but far higher than the $29 million it reported a year ago.
Revenues in the fourth quarter were $9.29 billion, down from $9.76 billion in the third quarter but up nearly 4 percent from $8.96 billion in 2008's fourth quarter. Fourth-quarter volumes climbed 1 percent from a year ago.
For all of 2009, AB InBev made a profit of $4.6 billion and had $36.76 billion in revenues.
AB InBev said in a statement that global demand for beer "remains relatively resilient." It warned that first quarter volume sales may suffer from the cold weather in the U.S. and alcohol tax hikes in Russia.
The brewer said it now depends on emerging economies for about half of its revenue and most of its volume sales. It is the market leader in the U.S. and in Brazil.
It said it would focus on growing its business after a tough year of cost-cutting and deleveraging. Debt paydown is still a top priority, it said, and would be funded by generating "significant free cash flow."
AB InBev has spent the last year struggling with the aftermath of a $52 billion takeover in July 2008, just weeks before the financial crisis sent debt costs soaring.
The company said it has now managed to extend some $20 billion in outstanding debt and this month obtained $17.2 billion in long-term bank financing to fully refinance the takeover debt.
It has also shaved some $1.1 billion from operating costs as it merged the two companies and has made $9.4 billion from selling off InBev's South Korean beer unit, Anheuser-Busch's theme parks and units in Britain and China. It said it has no plans to divest anything else.
The company said it last year added $787 million in working capital and reduced capital expenditure by $1.5 billion. It has some $1.7 billion to spend on major projects this year, it said.
Per gli USA addirittura il pronostico è di debolezza che si protrae per "alcuni anni", ma per l'Europa occidentale è anche più pessimistico. Negli USA i volumi 2009 sono scesi del 2,1% y-o-y, del 2,4% in Cina, del 4,9% in Europa occidentale, di oltre il 13% in Russia.
Prioritario per la società il tema della riduzione del debito: il leverage, oggi a quota 3,7x era a 5x ad inizio 2009 ed è stato ridotto in virtù delle dismissioni di cui abbiamo dato conto nel 3d. AB Inbev sarebbe intenzionata a ridurlo nel tempo fino ad un target di 2x, anche se viene difficile, IMHO, postulare una riduzione senza ulteriori dismissioni di asset.
FT.com / UK - AB InBev priority is debt reduction
AB InBev sees flat beer sales
By AOIFE WHITE (AP) – 4 days ago
BRUSSELS — The world's largest brewer and maker of Budweiser reported Thursday a fourth quarter profit of $1.28 billion, helped by cost cuts and price hikes, but said global beer sales were stagnant and forecast no rebound in 2010.
Anheuser-Busch InBev SA sold 0.7 percent less beer and soft drinks in 2009 during the economic downturn and says that global beer demand is neither growing nor shrinking.
"We see no improvement in the operating environment today," the company's chief financial officer Felipe Dutra told reporters.
Other brewers Heineken and SABMiller have also reported flat or falling beer sales for some or all of last year.
AB InBev chief executive Carlos Brito said he was hopeful that lower sales across the world were a "one-year event" triggered by the financial crisis and that emerging economies would return to growth, even if developed markets, above all in western Europe, remain in decline.
"We think that this thing will be sorted out and when it's done, markets will at some point go back to their original trend," he said. "We continue to be very bullish in the U.S. but recognize that until the economy gets better, we're going to have some tough years."
He was less optimistic about Europe, where people are buying fewer alcoholic drinks, turning from beer to other products and visiting bars less often, saying "as an industry, we haven't really cracked that code."
In the United States, the company's biggest market, beer volume sales were down 2.1 percent last year — even though revenues grew 0.6 percent. Volumes were also down by 13.1 percent in Russia, 4.9 percent in western Europe and 2.4 percent in China.
Despite the economic downturn, America's topselling beer Budweiser is gaining ground in new markets, the company said. Sales of the beer grew 12.1 percent in China last year and Brito said it is "growing nicely" in Britain and parts of South America.
"It's a brand that we continue to intend to push in different markets, it's amazing to see how the brand is recognized by consumers just by the very fact of its sponsorships ... the Olympics, the World Cup and a lot of the American sports that are seen and watched more and more around the world," he said.
Brito said the company was preparing for a surge in beer demand for this summer's soccer World Cup: "It's a beer event and that's why we sponsor it."
AB InBev said the $1.28 billion profit for the three months ending Dec. 31 was some 17 percent lower than the third quarter but far higher than the $29 million it reported a year ago.
Revenues in the fourth quarter were $9.29 billion, down from $9.76 billion in the third quarter but up nearly 4 percent from $8.96 billion in 2008's fourth quarter. Fourth-quarter volumes climbed 1 percent from a year ago.
For all of 2009, AB InBev made a profit of $4.6 billion and had $36.76 billion in revenues.
AB InBev said in a statement that global demand for beer "remains relatively resilient." It warned that first quarter volume sales may suffer from the cold weather in the U.S. and alcohol tax hikes in Russia.
The brewer said it now depends on emerging economies for about half of its revenue and most of its volume sales. It is the market leader in the U.S. and in Brazil.
It said it would focus on growing its business after a tough year of cost-cutting and deleveraging. Debt paydown is still a top priority, it said, and would be funded by generating "significant free cash flow."
AB InBev has spent the last year struggling with the aftermath of a $52 billion takeover in July 2008, just weeks before the financial crisis sent debt costs soaring.
The company said it has now managed to extend some $20 billion in outstanding debt and this month obtained $17.2 billion in long-term bank financing to fully refinance the takeover debt.
It has also shaved some $1.1 billion from operating costs as it merged the two companies and has made $9.4 billion from selling off InBev's South Korean beer unit, Anheuser-Busch's theme parks and units in Britain and China. It said it has no plans to divest anything else.
The company said it last year added $787 million in working capital and reduced capital expenditure by $1.5 billion. It has some $1.7 billion to spend on major projects this year, it said.
Imark
Forumer storico
Per Fitch il deleverage posto in essere dalle principali breweries europei nello scorso anno e la stagnazione del mercato, specie nei paesi maturi, porterebbe in prospettiva a nuove acquisizioni...
Alcuni dati interessanti per chi segue il comparto, specie sulla misura di attuazione del deleverage durante il 2009, in questo breve report...
Alcuni dati interessanti per chi segue il comparto, specie sulla misura di attuazione del deleverage durante il 2009, in questo breve report...
Imark
Forumer storico
Moody's rivede al rialzo il rating Anheuser-Busch Inbev, elevandone l'outlook a positivo per effetto dei buoni esiti della pianificata operazione di deleverage, della buona performance a livello operativo e della migliorata posizione di liquidità
Moody's changes outlook on Anheuser-Busch InBev's Baa2 rating to positive
Paris, March 09, 2010 -- Moody's Investors Service today changed the outlook on the Baa2 issuer and senior unsecured ratings of Anheuser-Busch InBev ("ABI") to positive from stable.
"The outlook change reflects the solid execution of the company's ongoing de-leveraging plan following its 2008 combination with Anheuser-Busch Companies Inc. ("BUD"), its resilient operational performance and improved liquidity profile," says Yasmina Serghini-Douvin, a Moody's Assistant Vice President--Analyst and lead analyst for ABI.
The rating action also acknowledges that the progress made in 2009 in strengthening company's credit metrics could - if sustained over the next 12 to 24 months -- more firmly position ABI in its trajectory towards a higher rating category.
ABI delivered a resilient performance in 2009 in the face of a challenging consumer environment in all its markets that was characterised, in particular, by a contraction in alcoholic beverage volumes and down-trading to cheaper brands and/or distribution channels.
The company's operating margins widened, helped by a modest increase in organic revenue, tight cost control, more favourable raw material costs and the USD1.1 billion in synergies extracted during 2009. The reported EBITDA margin (before non-recurring items) was 33.4%, up 179 bps from 2008, on an organic basis.
Moody's also views favourably management's continued efforts to reduce ABI's on-balance-sheet debt and the quality of the execution of its strategy since the combination with BUD was completed in November 2008, despite a depressed economic background and volatile capital market conditions.
Since the completion of the transaction, ABI has integrated the purchased assets and successfully achieved the key milestones underpinning the Baa2 rating, namely a USD9.8 billion rights issue executed in December 2008, over USD7 billion in cash proceeds from the divestitures of non-strategic assets from both former InBev and BUD and the refinancing of all of the bank senior credit facilities contracted for the financing of the transaction.
In addition to these initiatives and the company's solid cash flow generation capabilities, 2009 saw a more moderate level of investments and a higher working capital inflow supported by an improvement in the US. Moody's estimates that un-adjusted free cash flow was around USD6.1 billion in 2009, contributing to a reduction in reported net debt to USD45.2 billion. For the longer term, management reiterated its objective of a ratio of net debt to EBITDA (as defined by the company) of below 2.0x, from 3.7x at year-end 2009.
The Baa2 ratings reflect the company's scale as the world's largest brewer, its large portfolio of beer brands at various price points, dominant market positions in some of the largest beer profit pools and seasoned management with a solid track record of integrating acquisitions. The ratings are further supported by the company's efficient operations and high, recurring cash flows generated by its operations.
ABI's financial profile following the combination with BUD constrains the rating as credit metrics at the end of 2009 still position the company below its rating category, although Moody's is confident that ABI will continue its de-leveraging efforts and build a stronger financial profile in 2010, when the company's metrics are expected to improve closer to the rating agency's targets. Moody's also cautions that the company is currently involved in arbitration proceedings with Grupo Modelo in connection to the transaction with BUD, the outcome of which is yet unknown, and as such it is difficult to factor this into the present rating assessment.
Moody's notes that ABI's liquidity profile has been significantly enhanced by the active refinancing activity undertaken since 2009, with in excess of USD20 billion of debt capital markets issuances. Importantly, the company announced on 26 February 2010 that it had contracted un-covenanted long-term bank financing of USD17.2 billion to be used to pay down the outstanding loans under the acquisition package; as a result, the company now has limited debt maturities in the next two years and a longer average debt duration.
The positive outlook assumes that ABI will continue its de-leveraging process and will achieve credit metrics in the next 12 months that will position it strongly in its rating category and affirm the trajectory towards a stronger financial profile. A rating upgrade will likely occur if the company improves its credit metrics such that its ratio of Retained Cash Flow to Net Debt trends towards the low twenties, Debt to EBITDA falls below 2.7x and EBIT to Interest Expense increases above 5.0x.
Moody's last rating action on Anheuser-Busch InBev was on 29 September 2008 when the rating agency first assigned a Baa2 rating to the former InBev.
....
Headquartered in Leuven, Belgium, Anheuser-Busch InBev is the largest beer company worldwide with USD36.7 billion in revenue in 2009.
Moody's changes outlook on Anheuser-Busch InBev's Baa2 rating to positive
Paris, March 09, 2010 -- Moody's Investors Service today changed the outlook on the Baa2 issuer and senior unsecured ratings of Anheuser-Busch InBev ("ABI") to positive from stable.
"The outlook change reflects the solid execution of the company's ongoing de-leveraging plan following its 2008 combination with Anheuser-Busch Companies Inc. ("BUD"), its resilient operational performance and improved liquidity profile," says Yasmina Serghini-Douvin, a Moody's Assistant Vice President--Analyst and lead analyst for ABI.
The rating action also acknowledges that the progress made in 2009 in strengthening company's credit metrics could - if sustained over the next 12 to 24 months -- more firmly position ABI in its trajectory towards a higher rating category.
ABI delivered a resilient performance in 2009 in the face of a challenging consumer environment in all its markets that was characterised, in particular, by a contraction in alcoholic beverage volumes and down-trading to cheaper brands and/or distribution channels.
The company's operating margins widened, helped by a modest increase in organic revenue, tight cost control, more favourable raw material costs and the USD1.1 billion in synergies extracted during 2009. The reported EBITDA margin (before non-recurring items) was 33.4%, up 179 bps from 2008, on an organic basis.
Moody's also views favourably management's continued efforts to reduce ABI's on-balance-sheet debt and the quality of the execution of its strategy since the combination with BUD was completed in November 2008, despite a depressed economic background and volatile capital market conditions.
Since the completion of the transaction, ABI has integrated the purchased assets and successfully achieved the key milestones underpinning the Baa2 rating, namely a USD9.8 billion rights issue executed in December 2008, over USD7 billion in cash proceeds from the divestitures of non-strategic assets from both former InBev and BUD and the refinancing of all of the bank senior credit facilities contracted for the financing of the transaction.
In addition to these initiatives and the company's solid cash flow generation capabilities, 2009 saw a more moderate level of investments and a higher working capital inflow supported by an improvement in the US. Moody's estimates that un-adjusted free cash flow was around USD6.1 billion in 2009, contributing to a reduction in reported net debt to USD45.2 billion. For the longer term, management reiterated its objective of a ratio of net debt to EBITDA (as defined by the company) of below 2.0x, from 3.7x at year-end 2009.
The Baa2 ratings reflect the company's scale as the world's largest brewer, its large portfolio of beer brands at various price points, dominant market positions in some of the largest beer profit pools and seasoned management with a solid track record of integrating acquisitions. The ratings are further supported by the company's efficient operations and high, recurring cash flows generated by its operations.
ABI's financial profile following the combination with BUD constrains the rating as credit metrics at the end of 2009 still position the company below its rating category, although Moody's is confident that ABI will continue its de-leveraging efforts and build a stronger financial profile in 2010, when the company's metrics are expected to improve closer to the rating agency's targets. Moody's also cautions that the company is currently involved in arbitration proceedings with Grupo Modelo in connection to the transaction with BUD, the outcome of which is yet unknown, and as such it is difficult to factor this into the present rating assessment.
Moody's notes that ABI's liquidity profile has been significantly enhanced by the active refinancing activity undertaken since 2009, with in excess of USD20 billion of debt capital markets issuances. Importantly, the company announced on 26 February 2010 that it had contracted un-covenanted long-term bank financing of USD17.2 billion to be used to pay down the outstanding loans under the acquisition package; as a result, the company now has limited debt maturities in the next two years and a longer average debt duration.
The positive outlook assumes that ABI will continue its de-leveraging process and will achieve credit metrics in the next 12 months that will position it strongly in its rating category and affirm the trajectory towards a stronger financial profile. A rating upgrade will likely occur if the company improves its credit metrics such that its ratio of Retained Cash Flow to Net Debt trends towards the low twenties, Debt to EBITDA falls below 2.7x and EBIT to Interest Expense increases above 5.0x.
Moody's last rating action on Anheuser-Busch InBev was on 29 September 2008 when the rating agency first assigned a Baa2 rating to the former InBev.
....
Headquartered in Leuven, Belgium, Anheuser-Busch InBev is the largest beer company worldwide with USD36.7 billion in revenue in 2009.
