Categorized | News

AB-InBev Q3 results better than expected

BELGIUM: AB InBev Tops Forecasts With Q3 Results
Anheuser-Busch InBev has reported better-than-expected profit figures for its third quarter, as cost cuts and price hikes helped offset declining sales of its Budweiser and Bud Light brands. For the quarter, net profit amounted to $1.55bn, beating estimates of $1.39bn. No comparisons were given, as it was still being merged at the same time last year.

ab-inbev_logo

However, EBITDA only grew by 11.9% in the quarter on an organic basis, compared to 18.5% growth in the second quarter, as sales continued to drop. However, a “better than expected” reduction in selling expenses and rat material costs, as well as increased buying power, helped EBITDA margin rise by 3.9 percentage points to 36.4%.

Revenue was down 10.4% to $9.76bn, hurt by a 3.3% drop in beer volumes. The group said its core brands suffered, with volumes up just 0.4%, compared to the second-quarter growth of 1.5%. Volumes in the US fell 5.1%, those in Western Europe were down 3.3%, and CEE volumes slumped by 16.8%.

The group said it managed to cut $265m of expenses in the quarter, taking its year-to-date savings to $875m. AB InBev said it is aiming for $1bn in savings this year and $2.25bn within the first three years of the acquisition. CFO Felipe Dutra added, “We can now focus all of our efforts on growing our core business, including realizing top line synergy opportunities not considered in our $2.25 billion synergy commitment”.

Tags | , , , ,

Sunday, October 22, 6:34 am

Search by Tag