FY20 maiden net profit beat expectations significantly. The final dividend of 3.9c was also a surprise for Macquarie.
Volumes over the past 12 months are at 90% of pre-pandemic levels and while the outbreak still presents some uncertainty for volumes, the company points out pricing is holding up.
Macquarie expects FY21 volumes to be up 7-8%. The risk centres on the northern hemisphere, depending on how well brewer pubs maintain outdoor capacity during the cold weather. Outperform retained. Target rises to $5.09 from $5.05.
Sector: Food, Beverage & Tobacco.
Target price is $5.09.Current Price is $4.74. Difference: $0.35 – (brackets indicate current price is over target). If UMG meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
