Off-trade beer sales in Europe
Tobacco resilience largely confirmed but beverages trends more mixed
In this report we (i) summarise the key themes from the reporting season so far, (ii) provide updated estimates across the sector and (iii) review the latest external scanner data. In tobacco, results have so far largely confirmed the strong resilience of the core business model. In beverages, the China on-trade recovery appears to be disappointing compared to initial company expectations, while US/European off-premise consumption has surprised positively. In beer, topline trends have been weak but margins guidance more cautious. In terms of balance sheets all companies have so far stressed their strong liquidity with the tobacco stocks most reassuring on dividends.