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Result of a merger between
the American brewing company Anheuser Busch and the Belgian
InBev
•Worlds largest brewing company, as well as one of the top 5 companies producing consumer products
• The companies 36 billion dollar revenue comes from its three worldwide flagship brands
• As well as over 200 local and regional beer brands
Income Statement
Observations
• Massive drop in net income in 2008– Surprisingly not due to reduced revenue from the
financial crisis, but rather from unusual expenses incurred due to restructuring after the merger
• Massive growth from 2008 to 2009– Revenue up 55% ($23 billion – $36 billion)
• Fairly stable figures between 2009 and 2010– Continued growth in revenue, while COGS dropped
slightly– The only negative is the slight loss in Minority Interest
Balance Sheet
Observations
• The balance sheet is a bit more worrying• Of $114 billion in assets, $75 billion are Goodwill
and other Intangible assets– Tangible assets are less than the company’s debts– Current Assets less than Current Liabilities
• Debt to Equity has been very high in recent years– Peaked in 2008 at 4.06– AB InBev has been successful in managing this debt– Down to 2.24 in 2010
CEO’s Comments
• Closed 2010 with 4.4% growth in revenue– This is not entirely accurate, he is actually talking
about profits here
• Grew or maintained market share across the board– Lost 1 point in the share of US market, due to
underrepresentation in the high-end beer market, the fastest growing segment
– The plan to reduce the price gap between sub-premium and premium beers, in order to initiate trading up seems like a promising way to make up this loss in the future
For Investors
• AB InBev’s has shown growth in the past several years, and an ability to maintain success in times of financial uncertainty
• There are also risks– Recent growth has been financed by significant
amounts of debt– Although the company has been successful in
managing this debt so far, there is no guarantee that it will not become problematic
• It is generally the policy of the company to issue dividends, but this did not happen in 2010
The Verdict
• Investors for whom dividends are very important should be aware that this may not necessarily happen, but for the mid-high risk investor, AB InBev shows great prospects, and a good chance of high return on investment
The Coca-Cola Company
Ashot Manukyan
Introduction
• World’s largest non-alcoholic beverage company• Sold from 1886• 500 beverage brands (examples)• 200 countries• 1.7 billion servings
Income Statement
1. Constant growth in Revenue (06,07,08)
2. Decrease in revenue in 2009
3. Increase in revenue in 2010
4. Balanced Net Income till 2010
5. Increase in Profit margin
Balance Sheet
1. Increase in Total liabilities
2. Increase in Total Assets
3. Increase in liability => Increase in debt to asset ratio
Investments
$2 Billion in China and India
•Sprite, Maaza
•25000 Workers
•$1billion before
•54% of Chinese market
•More Consumers
•$1.6billion before
For the Investors
0
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0.5
2008 2009 2010 2011
Dividend
•After major investments…
•Quarterly paid dividends ($0.47)
•Fast growing company
•Expecting higher revenues
•Expanding in India, China, Russia
PepsiCo International
Hayk Bunatyan
Introduction
– Second largest beverage and food business– Founded in 1965– Sold in over 200 countries– Several hundred brands
Income Statement
1. Increase in revenues from $43,323 to $57,838 millions. 25.2% growth.
2. Increase in net income from $5,946 to $6,320
Balance sheet 1. Increase in total
assets from $39,848 to $68,153.
2. Increase in total liabilities from $22,406 to $46,677 millions.
3. Debt to assets ratio increases because of big number of debts.
The company is growing
• PepsiCo bought all Wimm-Bill-Dann shares.
• Biggest beverage and food business in Russia.
• Largest market outside of the Unites States is in Russia.
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