SABMiller's Chief Executive Graham Mackay. SABMiller's Chief Executive Graham Mackay.
Shares in global brewing giant SABMiller plc (SAB) soared on Friday, reaching a record high on the JSE following strong results on Thursday and a solid performance generally today for industrial stocks.
I-Net Bridge records show that at its intraday high of 259.71 rand, SABMiller's share price touched a record high. At 14:45 its share price was quoted at 256.50 rand, up 1.15% on the day. On the month the share has risen 3.45%.
Local traders said investors were cheered by the group's strong results, which were released Thursday. The firmer trend for industrial stocks on Friday on the JSE was also helping.
“The share price has put in a good performance. SABMiller's results yesterday were very solid and the share price is performing strongly. The company is well liked and the dividend was up nicely,” said a local trader.
“With the uncertainty in the US economy, investors are leaning very much to defensive-type stocks and good dividend payers. Also SABMiller is well diversified across many geographies and is a solid stock,” he added.
SABMiller on Thursday reported strong results for the year ending in March, with adjusted earnings up 20%, led by a stellar performance from emerging markets - in particular Asia and Africa.
The group reported a 19% rise in adjusted earnings per share to 191.5 US cents from 161.1 US cents. In SA currency terms, the rise amounted to 9% to 1,369.6 cents. Basic earnings per share rose 25% to 152.8 US cents.
The I-Net Bridge consensus forecast had been for diluted earnings per share (EPS) of 1,342.9 SA cents and a dividend of 556.9 SA cents.
Reported group revenue was up 7% to US$28.311 billion, with organic, constant currency group revenue growth of 5%. SABMiller said this was driven by the higher volumes, selective price increases in the current and prior year, as well as favourable brand mix, all reflecting the strength of its brands.
Reported earnings before interest, tax and amortisation (ebita) was up 15% to US$5.044 billion, with organic, constant currency ebita growth of 12%. The ebita margin increased by 120 basis points (bps) to 17.8%, while ajusted earnings grew by 20% to US$3.018 billion.
The board recommended a final dividend of 61.5 US cents per share to be paid on August 12, bringing the total dividend for the year to 81 US cents, an increase of 19% over the prior year.
The I-Net Bridge consensus forecast for FY2012 is for HEPS of 1,561.5 SA cents and a total dividend of 630.0 cents. - I-Net Bridge