Dear PGM Capital Blog readers, today March 9th 2012, Companhia de Bebidas das Américas (AmBev) (NYSE: ABV) reported its Q4-2011 and full year 2011 financial results
Highlights:
- In the fourth quarter, Net sales increased 11.6%, while for the whole fiscal year 2011, net sales increassed with 9.9%
- Normalized EBITDA reached R$ 4,506.1 million in Q4 2011, an organic growth of 21.4%, with a margin of 53.8%
- Full year 2011, Normalized EBITDA was R$ 13,141.1 million an increas of 14.8% YOY, with a margin expansion of 48.4%
- Cash generated from operations in Q4-2011 was R$ 5,791.9 million an increase of 44.3% as compared to Q4-2010, and R$ 13,785.8 million for the year 2011 an increase of 19.3% vs FY 2010.
- Full year 2011 Normalized Profit reached R$ 8,617.9 million, with normalized EPS growing 11.2%.
Based on Company’s fundamental and this earnings report the stock closed today at an all time high of USD 41.01 +0.29 (0.71%)
By mid March 2010, we have placed AmBev on our watch list, and currently have a STRONG BUY Rating on the stock.
Please receive here below an all tine chart of the company.
Last be but not least, before following any investing advice, always take your investment horizon and risk tolerance into consideration and keep in mind that the price of Green Commodities, as well as the stocks of their producers and processors can be very volatile and that sharp corrections might happen in the short term.
Yours sincerely
Eric Panneflek
Chairman
Seeing this kind of growth for a Brazilian company, it indicates that local consumption has made a phenomenal increase, while export must also have grown significantly.
The ‘strong buy’ recommendation, however, depends on the company’s continued growth capability, the investor’s time frame and investment needs. Once a company has reached this kind of spectacular growth it remains to be seen whether it can continue to do so. Its products, market share at home and abroad should be scrutinized to determine whether a ‘strong buy’ is an attractive alternative to the many possibilities depending on each individual’s objectives.