SAB’s NPAT-MI deteriorated in Q3 2018 (-11% YoY) primarily due to raw material cost hikes, which was consistent with management’s earlier guidance. Earnings may remain under pressure in Q4 2018, in our view, as SAB intensifies marketing activities after finishing its brand segmentation study, while Q4 2017 revenue was also a high base owing to distributor stocking ahead of a price hike in 2018.