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UPDATE 2-Ambev Brazil sees volume rising, with margin recovery slower | Instant News


(Adding comments from executives, analysts, sharing)

By Gabriela Mello

SAO PAULO, July 30 (Reuters) – Brazilian brewer Ambev SA sales have recovered from April’s lows, executives said on Thursday, expecting further increases after the coronavirus crisis halved its quarterly earnings.

The pandemic began hurting operations in March when the government quarantined the limited distribution of alcoholic drinks, including the brands Budweiser, Corona and Stella Artois.

“We are quickly adapting to the changes brought by COVID-19 in terms of consumption and volume sequentially improving since April,” Chief Executive Jean Jereissati told analysts about earnings calls.

The Latin American unit of Anheuser Busch InBev reported second-quarter net profit of 1.27 billion reais ($ 245.65 million), down 51.4% from the year-ago period. Margin adjusted before tax, interest, depreciation and amortization (EBITDA) margins fell to 28.8% from 38.6%.

Jereissati said Ambev expects a “V-shaped” recovery in volume and income, with a slower recovery in margins because market conditions tend to remain difficult in the second half.

“One of our biggest challenges going forward is how to increase profitability and this will not happen overnight because the future remains uncertain and consumption is still volatile,” Chief Financial Officer Lucas Lira said.

The company is stepping up efforts to cut discretionary costs while focusing more on customers, Lira added.

With bars and restaurants closed, Ambev diverted resources to other sales channels such as mother and child shops and e-commerce, including the Ze Delivery application.

“In a short time, Ambev has rediscovered itself using a digital sales initiative, keeping stakeholders close and the facility fully operational,” analysts at Credit Suisse wrote in a report, raising its stake to “outperform.”

Ambev shares fell 3% in the mid afternoon to 14.68 reais after rising as much as 5% at the opening.

The Brazilian subsidiary of AmBev, of which AB InBev has 61.9%, operates in 16 countries in America, including Argentina and Canada.

$ 1 = 5,1700 reais Reporting by Gabriela Mello; editing by Jason Neely

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Aldi will create 1,200 more jobs in the UK this year | Instant News


July 29 (Reuters) – Aldi, the fifth largest supermarket group in the UK, will create 1,200 additional jobs this year in the UK, which will increase the total new jobs in the UK to 4,000 for this year, the company said on Wednesday.

Aldi, who has more than 890 stores and employs around 35,000 people across the UK, said in a statement via email that they were opening new stores Sandhurst, Bristol and Edinburgh.

Additional work is a rare occurrence in this sector, which was declared hard hit by a coronavirus outbreak due to government restrictions on movement as well as consumer concerns about large public gatherings.

Unlike the country’s four big traders – industry leaders Tesco, Sainsbury, Asda and Morrisons – Aldi and rival Lidl GB continue to open new stores, pushing up market share.

In 2025, Aldi targets to have 1,200 stores in the United Kingdom.

Germany’s discount supermarket Lidl said earlier this month that it plans to open more than 25 new stores in the next six months, creating 1,000 jobs.

Reporting by Kanishka Singh in Bengaluru; Editing by Dan Grebler

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Amazon increases challenges in food delivery in the UK – Agricultural Commodities | Instant News


July 28 (Reuters) – Amazon will begin fast and free shipping of foodstuffs in London on Tuesday, with the aim of launching services throughout the UK at the end of the year when a locking up by coronavirus increases sales of goods needed online.

Said the e-commerce giant here he has added the ‘Fresh’ service to his UK website to deliver meat, produce, snacks and other household necessities in a two-hour window for orders over 40 pounds ($ 52), without shipping fees for members’ Prime ‘.

The move, which took some of the biggest names in British grocery stores, was marked by trade press earlier this year.

Industry data showed that food sales in the UK rose 14.6% in the four weeks to July 12 compared to the previous year, although it was slower than previous weeks because restrictions on loading the corona novel virus had been reduced.

($ 1 = 0.7774 pounds)

Reporting by Pushkala Aripaka in Bengaluru; Editing by Krishna Chandra Eluri

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EMERGING MARKET – Real Brazil outperformed Latam’s colleagues for a week, but sentiment was weak | Instant News


    * Argentine stocks to outperform peers for the week
    * Real up around 4% this week
    * Sino-U.S. tensions weigh, to weaken risk appetite

 (Adds details, graphic, updates prices)
    By Shreyashi Sanyal and Ambar Warrick
    July 24 (Reuters) - Brazil's real rose on Friday and was set
to outperform its Latin American peers for the week amid some
improving economic readings, with most other regional risk
assets also set for weekly gains.
    The real rose 0.4%, and was set to add nearly 4% for
the week. Inflation in Brazil rose in July at its fastest pace
in six months thanks to rising transport and fuel costs, but at
a far slower rate than economists had expected.
    Still, the reading indicated that economic activity was
picking up after the scaling back of coronavirus-driven
lockdowns, a trend that has been reflected across the rest of
Latin America as well.
    The real has recovered sharply from record-low levels hit in
May, thanks to sustained intervention from the central bank. But
local central bank officials have expressed concerns over being
able to manage heightened volatility in the currency, due to the
pandemic. 
    Bets on a COVID-19 vaccine had driven risk appetite through
the week. However, an escalation in Sino-U.S. tensions appeared
to be spurring risk-off, going into next week.
    China ordered the United States to close its consulate in
the city of Chengdu, responding to a U.S. demand this week that
China close its Houston consulate.
    The move saw global equities retreating, with regional
equities also falling in tandem. Still, most bourses were set
for weekly gains, with Argentine stocks set to
outperform their peers.
    
    Argentina's 1.7 trillion pesos ($23.7 billion) of short-term
'Leliq' notes have helped mop up liquidity in the market and
hold back rising prices, leaving the central bank with a tricky
task to rein in the debt without reigniting inflation.

     Mexico's peso rose to the dollar. Data showed the
country's economy shrank another 2.6% in May from April after a
record decline the previous month.
    "Although the economy will probably start to improve in the
second half of the year given the easing of restrictions in some
states, a slow and complex recovery is expected due to a severe
drop in investment spending," analysts wrote in a UBS client
note.   
    Bolivia's general election will be pushed back until Oct. 18
due to the coronavirus pandemic, which could fan tensions
between the interim conservative government and the socialist
party of former President Evo Morales.
    
    Key Latin American stock indexes and currencies:
    
    Stock indexes             Latest     Daily % change
 MSCI Emerging Markets         1059.95              -1.64
                                        
 MSCI LatAm                    2057.64              -0.48
                                        
 Brazil Bovespa              102188.31               -0.1
                                        
 Mexico IPC                   37254.26              -0.48
                                        
 Chile IPSA                    4021.32               0.93
                                        
 Argentina MerVal             48177.85             -0.476
                                        
 Colombia COLCAP               1177.90              -0.33
                                        
                                                         
       Currencies             Latest     Daily % change
 Brazil real                    5.1909               0.43
                                        
 Mexico peso                   22.2450               1.10
                                        
 Chile peso                      772.7              -0.34
                                        
 Colombia peso                 3685.36              -0.67
 Peru sol                       3.5338              -0.45
                                        
 Argentina peso                71.8900              -0.07
 (interbank)                            
                                        
 
        

    
 (Reporting by Shreyashi Sanyal in Bengaluru
Editing by Marguerita Choy)
  

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EMERGENCY MARKET – Brazil leads Latam losses after record increases in coronavirus infections | Instant News


    * Brazil's real comes off one-month high
    * Chilean stocks up as pension withdrawal bill approved
    * Weak oil prices hurt Mexican, Colombian pesos

 (Adds details, updates prices)
    By Shreyashi Sanyal and Ambar Warrick
    July 23 (Reuters) - Brazil's real led Latin American
currencies lower on Thursday after record daily increases in
coronavirus cases and Argentina left investors scurrying for
safety.
    The real slipped 1.5% against the dollar, while
Argentina's peso also weakened as the total number of
cases in Latin America passed 4 million, underlining the
difficulty the region is facing in controlling the pandemic.

    Currencies of oil-exporters Mexico and Colombia
 fell as crude prices slipped on concerns about rising
U.S. oil inventories.
    The Mexican peso will be on the radar for investors ahead of
next month's meeting of the central bank, also known as Banxico.
    Data showed Mexican inflation gained speed in the first half
of July, pushing up from the central bank's 3% target and
potentially limiting how much room policymakers have to further
cut rates.
    "Policymakers are likely to focus on the persistent weakness
of activity instead, so we continue to expect another 50bp rate
cut at the next Banxico meeting in August," said Nikhil
Sanghani, assistant economist at Capital Economics. 
    Consumer spending in Mexico is unlikely to pick up before
year's end as the Mexico City area, the core consumer market,
continues to suffer a high tally of coronavirus infections and
deaths, Moody's Investors Service said on Wednesday.

    Discouraging employment data from the United States also
undercut sentiment for the day, as a recovery in the jobs market
appeared to be stalling.
    Losses on Wall Street spilled over into the region, with
Brazilian stocks leading losses.
    Tax revenue in Brazil fell to a 16-year low in June as the
coronavirus severely crimped economic activity.
    Argentine stocks fell about 1.6%.
    The Argentine government could cede ground to creditors on
key legal terms as it looks to strike a deal to restructure
around $65 billion in foreign debt, but the government will not
increase overall cash flow in the payout, two sources told
Reuters.
    Chilean stocks bucked the trend, rising 1.5% after
Chile's Congress on Thursday gave its final approval to a bill
that allows citizens to withdraw 10% of their pension savings to
help ease the economic pain wrought by the coronavirus outbreak.

    Losses in Chile's peso were somewhat mitigated as
prices of its main export, copper, rose as available stockpiles
in London Metal Exchange (LME) warehouses tumbled to a fifth of
their level two months ago.
    Latin American stock indexes and currencies:
    
    Stock indexes             Latest       Daily % change
 MSCI Emerging Markets         1075.59                  -0.2
                                        
 MSCI LatAm                    2061.76                 -2.52
                                        
 Brazil Bovespa              102583.38                 -1.64
                                        
 Mexico IPC                   37288.33                 -0.42
                                        
 Chile IPSA                    4001.08                  1.42
                                        
 Argentina MerVal             47803.44                -1.708
                                        
 Colombia COLCAP               1182.82                  1.22
                                        
                                                            
       Currencies             Latest       Daily % change
 Brazil real                    5.1882                 -1.46
                                        
 Mexico peso                   22.4766                 -0.53
                                        
 Chile peso                      769.4                 -0.30
                                        
 Colombia peso                 3667.92                 -0.88
 Peru sol                       3.5178                 -0.28
                                        
 Argentina peso                71.8300                 -0.07
 (interbank)                            
                                        
 
    

 (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Andrea
Ricci and Grant McCool)
  

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