British-South African beer giant SABMiller has managed a modest growth in its second quarter. However small the growth, it is still an improvement on the previous quarter, when beer consumption went down.
1 % growth
SABMiller, the world's second largest beer company (behind Belgian AB InBev), has sold 1 % more beer in its second quarter than in the same period last year - thanks to Latin America and Africa, two regions that represent more than half of the company's turnover. North American sales dropped 2 %, because of decreased Coors Light and Miller High Life demand. That 1 % may be below analysts' expectations at 4 %, but it is still better than the previous quarter, when sales dropped 1 %.
SABMiller's trading update came earlier than expected in light of the current acquisition talks, even though it refrained from any further comment. Its shares dropped nearly 2.5 % after The New York Post had written president Jan du Plessis was inclined to stop the AB InBev acquisition, although that can also be considered a negotiation strategy...
British media believe AB InBev CEO Carlos Brito has placed an opening bid of 40 pounds per share, resulting in an 87.5 billion euro bid in total. Apparently, SABMiller wiped that offer off the table, giving AB InBev a week to table another bid for its closest competitor. Most analysts in the London City feel SABMiller should be worth 45 pounds per share, some 98.5 billion euro in total, but we will know for sure by 14 October.