SAB Miller in Africa: The lights are on for Tanzania, Zambia & Nigeria

Dear Africa Interested Individuals:
                                                        SAB Miller is the second largest brewer in the world and has major Africa brewing operations in Nigeria, Tanzania, Zambia, Mozambique, Botswana, South Africa and Uganda.  We take a look at the performance of the brewer in three African countries all based in different regions: East, Southern and West Africa.  

Tanzania Breweries Limited (TBL)

TBL is the best performing of the three SAB Miller breweries selected.  It has the most demand for its products.  The combined relative demand for the other two breweries is still less than that of TBL over a two-year average period.  TBL is also the most profitable by a wide margin.  Its pre-tax income margin is 29.3% while Zambian Breweries is 16.4% and International Breweries is 17.4%.  TBL's 2-year average RoE is more than the combined RoE for theNigeria and Zambia locations.   

TBL is also the most liquid of the three and is the least debt-burdened. It also spends the least to generate revenue among the three.  Net income grew by 6% for TBL and declined for the Botswana, Nigeria and Zambia locations from March 31st, 2014 - March 31st, 2015.  

The heaviest burden for the Nigeria location is debt and for the Zambia location is sales. 

As logically expected, TBL is the costliest per share as the stock trades at $7.13 per share.  International Breweries Nigeria trades at $0.09 per share while Zambian Breweries trades at $.001 (a tenth of one cent.)  Interestingly enough, the best company among the three on an absolute and relative basis is still trading at 21X trailing earnings while International Breweries is trading at 31X trailing earnings despite just releasing poor first quarter earnings for the period ended June 30th, 2015.  Zambian Brweries is trading at 26X trailing earnings.  I guess TBL may just have a decent upside to it still.  Any takers?  

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