Review of the four major brewers Q2 2009 September 2009
The four largest global brewers recently reported quarterly numbers. Some reported substantial increases in EBIT margins driven by an increased focus on margins, given that all of the brewers have a lot of debt on their balance sheets, says a new FAR report released today. Restructuring, better pricing and lower production costs all helped margins and cash flows. Key to sustaining these improved margins is market share. Rabobank believes that in the beer sector superior market share leads to superior margins and therefore expects market share to become an increasingly important point of attention for all brewers in the next few years. In the short term, margin improvement is likely to level off.
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