|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||84.88 - 87.30|
|52 Week Range||68.82 - 105.00|
|Beta (5Y Monthly)||0.72|
|PE Ratio (TTM)||22.98|
|Forward Dividend & Yield||1.68 (1.99%)|
|Ex-Dividend Date||Apr. 27, 2020|
|1y Target Est||N/A|
(Bloomberg Opinion) -- Lockdowns around the world have stressed-out consumers reaching for their beer glasses. But a tipple after a hard day working from home isn’t enough to preserve the world’s big brewers from the ravages of the coronavirus. Social-distancing measures have decimated their most profitable market: selling beer in restaurants, pubs and clubs.Anheuser-Busch InBev NV underlined the pressures on Tuesday when it halved its proposed final dividend from 1 euro to 50 cents per share, saving about $1.1 billion. It's a sensible move, given that this crisis has hit the maker of Budweiser and Stella Artois particularly hard and at an especially difficult time. Its shares rose as much as 4.4%The company is facing challenges on several fronts, all of which are compounded by the hit from Covid-19. For a start, the $100 billion acquisition of SABMiller in 2016 left it with a mountain of debt. Before taking into account the dividend cut, Bernstein analyst Trevor Stirling estimates net debt of $86 billion will be 5.7 times Ebitda at the end of this year. Second, the company is highly dependent on emerging markets, where it gets about 60% of its profit. And yet important currencies including the Brazilian real and Mexican peso have fallen against the dollar, putting more pressure on earnings.This is the absolute worst time for any form of socializing to evaporate because it hurts sales of the more premium brands, such as AB InBev’s Michelob Ultra. It’s unlikely an upswing in drinking at home can compensate for a decline in sales at pubs and restaurants for any brewer. Beer in supermarkets tends to be bought when it is on special offer. And even at home, beer and alcohol consumption can be driven by sporting events, so decisions to postpone the European Football Championships and Olympics will hurt.Given this backdrop, AB InBev should have gone further and canceled its final dividend altogether. True, another $1 billion wouldn’t have made a huge difference, and may have irritated the group’s big shareholders, tobacco giant Altria Group Inc. and Colombia’s Santo Domingo family. But it should have erred on the side of caution anyway.It’s a choice the company has faced before, and now it’s clear that AB InBev should have been more radical when it decided in October 2018 to halve its annual payout, from 3.6 euros to 1.8 euros, saving about $4 billion. At the time, the company described this as steering a middle course between maintaining and shelving the dividend.But Covid-19 makes the middle an even more painful place to be. AB InBev should not lose this latest opportunity, when it announces interim results in July, or sooner, to reset its dividend policy, and cancel the payout altogether.While lockdowns should ease later in the year, there’s no guarantee that the things that drive beer consumption, from big concerts and sporting events to local pub life, will come back quickly. And when they do, people around the world may still be reluctant to visit crowded venues. And that’s before any impact from a broader economic downturn. Thrifty consumers may continue to trade down to cheaper brews.It’s this uncertain future that calls for caution. Yes, AB InBev is good at controlling spending. And things are looking up on its debt load. It recently raised about $11 billion of bonds to bolster liquidity. Debt has an average maturity of 14 years, so there shouldn’t be any immediate cash crunch. But the recent pressures on trading do raise questions about whether it should continue to have about $128 billion of goodwill on its balance sheet.When AB InBev bought SABMiller, rival brewers risked becoming Megbrew roadkill. Today, with stronger balance sheets, Heineken NV and Carlsberg A/S look better placed to weather the Covid-19 crisis. It’s time for AB InBev to make some hard choices.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
For investors with a long-term horizon, assessing earnings trend over time and against industry benchmarks is more...
Heineken <HEIN.AS>, the world's second largest brewer, suffered a decline in beer sales in the first three months of the year, forecast worse to come in the second quarter and scrapped its 2020 guidance due to the coronavirus crisis. The brewer of Heineken, Tiger and Sol beers and Strongbow cider said on Wednesday it believed beer sales fell by 2% in the first quarter and overall volumes, including cider and soft drinks, by 4%.
(Bloomberg Opinion) -- Nothing says funding is not a problem during this crisis than a 10 billion-euro ($11 billion) debt issue. Spain, in a state of emergency because of the coronavirus, achieved this on Tuesday with a seven-year bond sale that attracted more than 36 billion euros of orders.The country was one of 11 high-grade borrowers testing the waters in what was the busiest day of the month for bond sales and the fourth-busiest of the year. This week’s volumes have already surpassed the total of the first three weeks of March, when the outbreak really suppressed supply. Wednesday is set to be even bigger.Raising such a jumbo deal did mean Spain had to offer a yield that was 18 basis points higher than an existing, slightly shorter seven-year bond. Its last syndicated issue, earlier this year, came with a lower yield than its existing debt. However, the world has changed profoundly and issuers have to be prepared to dangle a carrot to entice investor demand. In the circumstances, this wasn’t much of a premium for investors.A similar phenomenon was also evident for the European Investment Bank, whose three-year bond deal came at an 11 basis-point premium to its existing equivalent. Likewise, premiums were in evidence Monday for new deals from the German States of Bavaria and Saxony-Anhalt. Though, again, they weren’t huge, which shows how desperate investors are to find somewhere to put their money.Corporate deals are making a comeback too: Unilever NV and Engie SA last week followed the trend for higher yields. Company issuance has seen the biggest decline in the bond market this year, unsurprisingly give the business shutdowns, running nearly 20% behind last year's pace. Coca Cola European Partners, Sanofi and Nestle SA all came to the market with multi-tranche issues on Tuesday, illustrating the improvement in conditions. Heineken NV, Danaher Corp. and Carrefour SA were doing benchmark euro deals on Wednesday.The European Central Bank can breathe a bit easier as its 1 trillion euros of quantitative easing planned for the rest of this year is starting to take effect. As there will be considerable emphasis on its corporate sector purchasing program, many of the new investment grade deals should benefit from being scooped up by the ECB, if they’re from Europe-based issuing entities.Wednesday has also seen the return of major banks with Lloyds Banking Group Plc, HSBC Holdings Plc, and Goldman Sachs Group Inc. all bringing euro deals. Credit spreads (the yield on corporate debt relative to sovereign benchmarks) have ballooned since late February, offering better returns for investors than government bonds if they have cash to put to work. Those spreads will start to narrow, but the virus has created a new paradigm, whereby a decent new-issue premium is essential to a successful deal. Normality is returning to European debt capital markets, but the heady days of super-tight credit spreads and incredibly low non-core government bond yields look to be over.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Marcus Ashworth is a Bloomberg Opinion columnist covering European markets. He spent three decades in the banking industry, most recently as chief markets strategist at Haitong Securities in London.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Heineken NV <HEIN.AS> will invest 865 million reais ($183 million) to expand its Ponta Grossa brewing plant in Brazil, the company said on Monday, as competition between the world's two largest beer makers bubbles up. The Dutch brewer will make the investment this year and next and focus on it Heineken and Amstel brands at the third-largest brewing facility in Parana state in Brazil, its most important market worldwide. The company did not give details of the expansion plan, stating only that production would rise by 75%.
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll apply a basic P/E...
Scientists have determined the thin liners inside aluminum cans can cause cannabis drinks to lose their potency.
(Bloomberg) -- Shopify Inc. reported fourth-quarter revenue that topped analysts’ estimates and gave an optimistic forecast for this year, boosted by holiday shopping and add-on services such as payment and marketing tools. The shares surged the most in almost four years.Sales grew by 47% to $505.2 million in the quarter, Ottawa-based Shopify said in a statement Wednesday. Analysts expected $481.6 million, according to data compiled by Bloomberg. For 2020, Shopify said it sees revenue of $2.13 billion to $2.16 billion, compared with analysts’ projection for $2.12 billion.The key metric of gross merchandise volume, which represents the value of all goods sold on the platform, increased 47% from a year earlier. Over the Black Friday/Cyber Monday holiday weekend, merchants on Shopify’s platform, which now number more than 1 million, made more than $2.9 billion in sales, up from $1.8 billion a year earlier, according to the company.The New York-listed shares jumped as much as 15.5% at 9:30 a.m. Wednesday, to a new record of $569.10.The stock has risen more than 70% from November, boosted by the pace of revenue growth and amid optimism for a fulfillment center plan announced last year. Shopify said in June that it will invest $1 billion in facilities over five years to help merchants on its platform deliver products quickly and easily, following a path blazed by Amazon.com Inc. A few months later, Shopify made its biggest acquisition yet, paying $450 million for 6 River Systems, a warehouse robotics company.Shopify helps businesses open their own digital stores across multiple channels, including social media, through its platform. The company also provides point-of-sale services in brick-and-mortar stores, competing with Square Inc.The company also swung to a profit in the fourth quarter, reporting $771 million, compared with a loss of $1.5 billion a year earlier. Profit excluding some costs was 43 cents a share in the quarter, beating analysts’ projection for 24 cents.“Shopify’s 4Q 2019 performance was impressive in our view,” said Anthony Chukumba, an analyst at Loop Capital Markets, in a note following the results. “We were particularly encouraged by the gross merchandise volume (GMV) growth, which further demonstrates how Shopify is ‘democratizing commerce’ and providing value to its merchants.”Besides fulfillment centers, the company has rolled out tools such as chat and email, as well as video and 3D modeling for products to help merchants improve marketing and build direct relationships with buyers. Such investments combined with the company’s push to capture international markets could prevent any significant margin expansion in 2020, said Anurag Rana, a senior analyst with Bloomberg Intelligence, in a Feb. 5 note.Chief Financial Officer Amy Shapero acknowledged on an earnings call that 2020 is “clearly a year of heavy investment” for Shopify, but the company expects to see strong growth from the resulting increase in clients and gross merchandise volume, she added.Shopify said it expects an operating loss in the range of $324 million to $344 million in 2020.While it mainly caters to small and medium businesses, Shopify also counts high-profile brands such as Gatorade, Aerosoles, Victoria Beckham Beauty, Heineken, and SpaceX. Shopify Plus, a segment geared toward companies with high sales volumes, has been key to attracting such larger brands. Shopify Plus contributed 27% of the company’s overall monthly recurring revenue, compared with 25.4% in the same quarter last year.To contact the reporter on this story: Nikitha Sattiraju in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Molly Schuetz at email@example.com, Jacqueline ThorpeFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Heineken <HEIN.AS>, the world's second largest brewer, forecast lower barley and aluminium costs would help to boost profits this year, when its long-serving chief executive will step down. Shares in the maker of Heineken, Europe's top-selling lager, as well as Tiger, Sol and Strongbow cider, jumped more than 6% in early Wednesday trading as investors cheered solid fourth-quarter results, led by growth in Vietnam, Cambodia and Brazil. Along with a more moderate increase in input costs, that should result in a mid-single digit percentage rise in operating profit in 2020, it added, while saying it was too early to assess the impact of the coronavirus outbreak on its business.
Jean-Francois van Boxmeer, chief executive of Dutch brewer Heineken <HEIN.AS> for the past 15 years, will step down on June 1 and be replaced by the head of the company's Asia-Pacific region, the world's second largest beer maker said on Tuesday. The brewer of Europe's top lager Heineken, as well as Sol, Tiger and Strongbow cider, announced the change a day before it publishes its 2019 results. Belgian Van Boxmeer, 58, joined Heineken in 1984 as a trainee and took a number of management positions, including in Africa, before becoming CEO in 2005.
(Bloomberg) -- The milk float, a home-delivery service that evolved from horse-drawn carriages to early electric vehicles, belongs firmly in the past. Or does it?A little known Amsterdam-based online grocery company had revived the concept, but with a modern flourish.Picnic BV has a concept dubbed “Milkman 2.0” to deliver groceries using electric vehicles, focusing on less food waste and fewer food miles traveled. The company buys and delivers locally, with its vans going no faster that 50 kilometers per hour.“Our aim is create a sustainable infrastructure for food delivery,” Joris Beckers, the company’s 53-year-old co-founder, said in a phone interview.Founded in 2015, Picnic has unleashed a fleet of 1,000 electric vans on to the streets of the Netherlands and Germany and plans to add “hundreds more” by the end of 2020. The company says the delivery vehicle it has designed and produced is fully electric and “has no small particle emissions and prevents traffic due to its slim design.”Wealthy BackersBacked by investors including the investment arm of the entrepreneurial Fentener van Vlissingen family, the company raised 250 million euros ($278 million) in a new round of funding in November.Other backers include De Hoge Dennen Capital, the De Rijke family and Hoyberg, the investment arm of the Hoyer family, which is a shareholder of Heineken NV.“We are high growth, high risk, but in it for the long-term,” Beckers said.The company will use the cash to continue its growth and build a “robotised fulfilment center” for online groceries in Utrecht, Holland. The center will aim to process around 150,000 orders every week, it says.Building InfrastructureThe grocery-delivery market is intensely competitive, and Picnic’s concept is not entirely original. In the U.K., Ocado is among online supermarkets with no stores that delivers from its warehouses. In Germany, there’s Bringmeister.Picnic says it has a 5% market share in the most mature cities in which it is active. The grocery market in the Netherlands totals 40 billion euros and in Germany it’s 175 billion euros, according to the company.This year was a record for Picnic, which added almost 300,000 new customers in the Netherlands and Germany. Picnic’s annual revenue currently stands at about 300 million euros, but the company has its sights set on bigger things.A law graduate and a biking enthusiast, Beckers, who said at a Shop Talk Europe conference in 2017 that he “stumbled into the internet world around about 1999, when Amazon was still a little bookstore,” doesn’t want Picnic to stop at groceries.“Food is our entry point but we’re building an e-commerce infrastructure,” he said.For instance, the company is operating a number of pilot projects with fashion retailers including Zalando SE to allow customers to send their returns back via Picnic.“We are disrupting and significantly improving the e-commerce experience,” Beckers said.To contact the reporter on this story: Sarah Syed in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Vidya RootFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Heineken <HEIN.AS>, the world's second-largest brewer, forecast profit this year would be at the bottom end of its previous guidance after an unexpected dip in third-quarter sales in the Americas partly offset strong growth in Asia. The Dutch maker of Heineken, Europe's top-selling lager, as well as Tiger, Sol and Strongbow cider, said on Wednesday that operating profit before one-offs would rise by about 4% on a like-for-like basis in 2019. It had previously forecast mid-single-digit percentage growth, although market expectations had shifted to the bottom of that range after operating profit barely grew in the first half of the year.
The premium beer segment in China is fast-growing and highly profitable. Can China Resources Beer Holdings Co Ltd capture more of it?