Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

AB InBev's sales exceed pre-pandemic levels but profit underwhelms

07/29/2021 | 07:49am EDT
FILE PHOTO: Non-alcoholic Jupiler beer bottles are seen at the headquarters of AB InBev in Leuven

BRUSSELS (Reuters) -Anheuser-Busch InBev underwhelmed on second-quarter profit on Thursday as costs increased even though the world's largest brewer drove revenues to above pre-pandemic levels.

The brewer reported lower core profits in its two biggest markets, the United States and Brazil, as cans and distribution became more expensive and a weaker Brazilian real bit.

AB InBev retained its forecast that earnings before interest, tax, depreciation and amortisation (EBITDA) would grow by between 8% and 12% this year, with revenue increasing at a faster pace.

In the second quarter, that profit figure rose 31% on a like-for-like basis to $4.85 billion, against expectations for a 35% increase, according to a company-compiled poll.

Analysts at Citi said core profit missed estimates, and the lack of upgrade to the forecast was another negative.

AB InBev shares were down 6.0% at 54.62 euros at 1100 GMT, placing them among the weakest performers in the FTSEurofirst300 index of leading European shares and meaning they are now also lower in the year to date.

The company said its outlook reflected its current assessment of the scale and magnitude of the pandemic and could be subject to change.

CAN CHALLENGE

In a clear sign that the pandemic and related restrictions are not over, South Africa instituted a new alcohol sales ban for four weeks from late June and ongoing curbs in South Korea led to lower beer sales there.

The pandemic has also led to a surge in demand for cans, pushing up their price, given restrictions on bars, where bottles and kegs are the norm.

"We had to import a lot of cans from several different markets, cans from Mexico, cans from China, cans from Europe and India in order to serve the high demand," chief executive Michel Doukeris told Reuters in a telephone interview, referring to the U.S. market.

Transportation costs have also increased, both due to higher prices and distance travelled. In Brazil, returnable bottles used in bars are closer at hand, available in every brewery, while cans have further to travel.

Doukeris, the former North America zone head who took over as chief executive from fellow Brazilian Carlos Brito on July 1, said revenue in the April-June period was 3.2% higher than in the same period of 2019.

A year on from its worst quarter of the COVID-19 crisis, the brewer of Budweiser, Stella Artois and Corona did benefit from increased beer consumption across the Americas, in Europe and South Africa, including a leap of more than 50% in Colombia.

Only in China, which moved out of its coronavirus lockdown earlier in 2020, were beer volumes lower.

The world's second largest brewer, Heineken, reports its first-half results on Monday, with global number three Carlsberg on Aug. 18.

(Reporting by Philip Blenkinsop; Editing by Anil D'Silva and Jane Merriman)

By Philip Blenkinsop


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
DOW JONES AFRICA TITANS 50 INDEX 0.33% 514.21 Delayed Quote.-3.27%
DOW JONES SOUTH AFRICA(ZAR) -0.44% 1861.4 Delayed Quote.6.01%
EURO / BRAZILIAN REAL (EUR/BRL) 0.63% 6.2947 Delayed Quote.-1.87%
HEINEKEN HOLDING N.V. 0.20% 75.65 Real-time Quote.-2.01%
S&P AFRICA 40 INDEX 0.05% 165.75 Delayed Quote.-4.24%
THE NASDAQ COLOMBIA INDEXED MARKET 2.50% 358.065856 Real-time Quote.-21.93%
US DOLLAR / BRAZILIAN REAL (USD/BRL) 0.83% 5.382 Delayed Quote.2.77%
Latest news "Economy & Forex"
05:55pRefinitiv agrees to pay a civil penalty of $650,000 for failing to report certain swap data -CFTC
RE
05:54pU.S. environment agency urged by 21 states to toughen vehicle emissions rewrite
RE
05:49pFED WILL ALLOW LABOR MARKETS TO 'RUN THEIR COURSE' : Bostic
RE
05:39pChile cenbank to decide on roll-out of digital currency in 2022
RE
05:37pGM backs vehicle emissions reductions goals in EPA proposal
RE
05:34pDogecoin Lost 3.36% to $0.201 at 5 p.m. ET -- Data Talk
DJ
05:34pEthereum Lost 3.67% to $2974.94 at 5 p.m. ET -- Data Talk
DJ
05:34pThe WSJ Dollar Index Rises 0.08% to 87.97 -- Data Talk
DJ
05:34pBitcoin Lost 2.09% to $42695.70 at 5 p.m. ET -- Data Talk
DJ
05:34pEuro Lost 0.21% to $1.1696 -- Data Talk
DJ
Latest news "Economy & Forex"