Avior Capital Markets - International Breweries PLC (INTBREW) IntBrew | Treading water

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Avior Capital Markets

Ross Hindle

IntBrew | Treading water

International Breweries (IntBrew) released a disappointing set of FY'18 results, despite exceeding our earnings expectations (EPS of -NGN0.45 versus -NGN0.53 Avior estimate). Due to various acquisitions and capital projects, the Group's debt has increased to NGN217bn (FY'17: NGN88bn) resulting in a net debt/EBITDA ratio of 8.1x (net debt/EBIT of 25x). We do not believe the current gearing levels are sustainable. Thus, we forecast negative earnings over the next three years due to excessive interest payments. As such, we maintain our SELL recommendation.

04/07/2019 11 EN

Underlying

International Breweries PLC

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NGINTBREW005 Nigerian Stock Exchange

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

Ross Hindle

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IntBrew | Treading water

INTERNATIONAL BREWERIES PLC 9M'22 Earnings Release - Excise duties take a toll on earnings

INTERNATIONAL BREWERIES PLC H1'22 Earnings Review - Q2 performance underwhelms

INTERNATIONAL BREWERIES PLC Q1'22 Earnings Release - Impressive Q1 profit underpinned by pricing upswing

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SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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