(35,01 EUR, 0,01%) is hosting a Financial Markets Conference on Asia later this week, on 8-9 December. Presentations will be given on, amongst others, Asia Pacific Breweries, India, China, Indochina and Heineken’s overall export business.
Asia Pacific is obviously one of the nicer growing parts of although it is fairly small. Most of revenue and profits in this zone is being generated through the Asia Pacific Breweries JV which is incorporated through equity consolidation. We remind that Asia Pacific represented about 1% of consolidated beer volumes in 2010 and almost 13% of group beer volumes. Asia Pacific represented 1% of consolidated revenues and 5% of total EBIT (beia) in 2010.
Asia Pacific is fairly important for the brand though, with about 5.4m hl sold in 2010 which represented about 21% of the brand’s total volume generated in the International Premium Segment. We remind that the brand has a leadership position in the International Premium Segment with a global market share of 20.7% representing 26.0m hl of the brand in 2010.
Our View:
has attractive long-term growth potential in the whole Asia Pacific region, not at least in India where the per capita consumption is less than 1.5 litres (vs. 50-60l in many other developing markets) and where the group has a market share of approximately half of the total market. However, the current contribution to total results of India and Asia Pacific as a whole is relatively small. We do not believe the upcoming Financial Markets Conference will fundamentally change our view on the company. We continue to rate a BUY on the attractive valuation, despite the weak current business momentum (as reflected in the company’s guidance of a flat organic EBIT (beia) performance for the full year 2011).