AB InBev toasts strong Q2 and half-year results

Anheuser-Busch InBev hailed a strong first-half to 2017 as revenue grew 5% to $14bn in the three months to the end of June and 4.4% to $27bn in half-year.

The world’s largest brewer by sales credits its strong performance to a combination of benefits reaped from its merger with SABMiller last year and revenue management initiatives as well as premiumization. The company said it saved $335m from synergies in Q2 alone.

AB InBev said total beer volume grew 1%, with its own beer volumes up 2.1%, driven by growth in South Africa, Mexico and Australia despite continued struggles in the U.S. and Brazil, two of its largest markets.

In the U.S., sales fell 0.2% in the second quarter and 1.3% in half-year, caused by a 3% decline in sales-to-retailers (STRs). The company notes that industry STRs in the U.S. fell 0.7% in the second quarter and 1.1% in half-year.

Brazil experienced an even steeper decline in revenue of 3.8% in the second quarter and 1.6% in half-year, driven by turbulent political and macroeconomic environment of high unemployment and low consumer confidence.

Elsewhere, business was good in Mexico, with low double-digit revenue gains in the second quarter and single-digit growth in half-year, helped by double-digit growth of the company’s Victoria brand and equally good performances of its Corona, Bud Light and Michelob Ultra brands.

The brewer said it maintained strong momentum in China in the second quarter, with 7.2% revenue growth and 9.1% lift in half-year, helped by revenue management initiatives.

Western Europe also delivered strong results for the brewer, buoyed by growth in its premium portfolio, especially the global brands – Budweiser, Stella Artois and Corona. Eastern Europe; however, posted low single-digit declines due to continued macroeconomic headwinds in Russia and Ukraine as well as large PET ban in Russia.

In Africa, excluding South Africa, beer volumes grew 20%, driven by strong growth in Nigeria, Tanzania and Uganda and marginal growths in Zambia and Mozambique.

South Africa, the birth place of SABMiller, was a star performer for the brewer, with revenue rising 13.4% in the second quarter and 9.7% lift in half-year, benefiting from the timing of Easter.

Net profit in the three months to the end of June climbed to $1.5bn (€1.28bn), from $152m (€129m) a year earlier and $2.9bn in half-year.

Leave a Reply

Your email address will not be published. Required fields are marked *