InBev Lifts Cost-Savings Target as Earnings Miss Forecasts
March 02 2017 - 2:12AM
Dow Jones News
By Nick Kostov
Anheuser-Busch InBev NV (BUD), the world's largest brewer, on
Thursday raised its cost-savings target from its $100 billion-plus
megamerger with rival SABMiller as it reported weaker-than-expected
earnings after selling less beer in its second largest market,
Brazil.
The maker of Budweiser, Stella Artois and Corona said it now
expects to save at least $2.8 billion from the tie-up, up from
$2.45 billion previously. This includes the $1.05 billion in cost
savings SABMiller said it would target before the merger
completed.
Net profit was $400 million for the three months to Dec. 31,
down from $2.29 billion a year earlier, on revenue that rose 0.2%
to $14.2 billion.
AB InBev added that it had already captured $282 million of the
savings by Dec. 31.
Facing a decline in the popularity of its biggest brands in the
U.S. and Western Europe, AB InBev completed bought rival SABMiller
last year, making a huge bet that it could instead tap new growth
in Africa and other emerging markets like Colombia and Peru.
-Write to Nick Kostov at nick.kostov@wsj.com
(END) Dow Jones Newswires
March 02, 2017 01:57 ET (06:57 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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