Anheuser-Busch InBev increased third-quarter core profit by more than expected as price rises and cost cuts offset lower beer consumption, and forecast similar expansion in the last three months of the year.
The world's largest brewer and maker of Budweiser, Stella Artois and Beck's said today it expected some year-on-year volume improvement in the October-December period, but higher investment for sales and marketing and administrative costs.
The company forecast its much-watched core profit or ebitda (earnings before interest, tax, depreciation and amortisation) would show similar year-on-year gains in the fourth quarter as in the third.
That figure rose in the July-September period to $3.55 billion, a like-for-like increase of 11.9 per cent.
The company suffered a 3.2 per cent decline in volumes, falling in all regions except Brazil. Tight cost control, including an extra $265 million of gains from the Anheuser-Busch takeover, led to improved margins.
InBev bought its US rival for $52 billion last year and has targeted $2.25 billion in savings in three years. It said it remained on track to reach $1 billion this year, having hit $875 million in the year to date.
World number two SABMiller reported a 1 per cent decline in volumes for its half year to the end of September.
Number three Heineken's volumes were down 4.7 per cent on a like-for-like basis in the third quarter, while fourth-largest brewer Carlsberg's were off 5 per cent.
All have benefitted from price increases and cost control.
A year ago, shares of the new AB InBev sank to a five-year low of €9.96 as it launched a $9.8 billion rights issue and investors expressed concern over its heavy debt.
The company has since raised a potential $9.4 billion from asset sales, has issued nearly $20 billion in bonds and its shares have more than tripled.
Reuters