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Beerworkers Archive

Post date: 10/06/2013 - 19:09

AB InBev reports jump in core earnings

The multinational brewer reported a 5.8 percent rise in profit before tax in the second quarter; the increase was due to an increase in prices and consumption of its premium beers. AB InBev, the largest brewer in the world, made more money than expected in the second quarter as consumers absorbed the higher prices and premium beers were passed.

The company reported a 5.8 percent jump in core earnings before tax and amortization (EBITDA) for the second quarter to 3,900 million.

The firm said sales rose 3.9 percent, however, in its two main markets, the U.S. and Brazil, there was a fall in sales volumes and only reported an increase in China, one of its main markets. Despite the decline in sales, the company reported an increase in revenue in the United States due to an increase in prices at the end of last year and a change of its new products.

In Brazil, where it has two thirds of the market, AB InBev suffered a decline in sales volumes for the second consecutive quarter, although the football tournament at the Confederations Cup and a better climate meant that the fall was not as marked as in the first three months of 2013.
“Not at all a great quarter but exceeded market expectations and soothed investor concerns about the weakness of Brazil and the lack of growth in margins in North America," said Jefferies, an analyst at U.S.

AB InBev, like all major global brewers rely on growth in so-called emerging markets after prolonged pressure on consumer spending, especially by the rise in prices in Europe and the United States.

Original article in Spanish: