AB InBev Profit Rises but Struggles in Brazil, U.S. Continue
May 04 2017 - 2:42AM
Dow Jones News
By Nick Kostov
Anheuser-Busch InBev NV, the world's largest brewer by sales,
reported a sharp rise in net profit but said it continued to
struggle in the U.S. and Brazil, its two largest markets.
The maker of Budweiser, Stella Artois and Corona said net profit
surged to $1.41 billion in the three months to the end of March
from $132 million a year earlier, when it was hit by funding costs
linked to the purchase of rival SABMiller.
Revenue rose 3.7% on an organic basis to $12.92 billion, lifted
by Latin America and Asia Pacific. The brewer, however, said it
lost market share in the U.S. and revenue per hectoliter in Brazil
declined due to large state tax increases last year that haven't
yet been passed on to customers.
Facing a decline in the popularity of its biggest brands in the
U.S. and Western Europe, AB InBev completed the acquisition of
SABMiller last year, making a huge bet that it could instead tap
new growth in Africa and other emerging markets like Colombia and
Peru.
The company said its full-year expectations remained unchanged,
including an acceleration of revenue growth.
Write to Nick Kostov at Nick.Kostov@wsj.com
(END) Dow Jones Newswires
May 04, 2017 02:27 ET (06:27 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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