CS View: All in all, ABV posted a strong performance in 2Q09. Results beat our and market estimates, especially in regards to the Brazilian division. During the conference call, management stated that they will remain “cautiously optimistic” going forward, since they believe that 2H09 should be better than previously anticipated in the beginning of the year, especially in regards to Brazilian operations. However, they
expect 2H09 to be more challenging than 1H09, as some of their hedges become less favorable (in Brazil, they have hedged BRL at $1.88/US$) and they should face tougher comps in 3Q09. According to ABV, consolidated EBITDA organic growth
should be lower than the 15% y/y delivered in 1H09. We reiterate our Outperform rating on ABV, since it is still less exposed to the global slowdown than its peers, and its shares are trading at 8.1x EV/EBITDA 10, a 5% discount to global peers.