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SAB - Q2 sales jump but margin contraction drags on earnings - Earnings Flash

Company Research

31 Jul 2018

Robust beer sales despite easing A&P. SAB’s revenue jumped 12% YoY in Q2 2018, stronger than the 5% YoY expansion in Q1 2018. This was on the back of an acceleration in beer revenue, which rose 10% YoY in Q2 2018 vs 3% YoY in Q1 2018. This is encouraging given that ThaiBev is carrying out a brand portfolio review for SAB and has yet to push A&P spending. In H1 2018, selling expenses dropped 5% YoY, including a 26% slump in A&P expenses.

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