AB-InBev cautiously optimistic about Brazil
AB-InBev reported a sharp rise in net profit during its first quarter 2017 but said it continued to struggle in the US and Brazil, its two largest markets.
The maker of Budweiser, Stella Artois and Corona reported on 4 May 2017 that net profit surged to USD 1.41 billion in the three months to the end of March from USD 132 million a year earlier, when it was hit by funding costs linked to the purchase of rival SABMiller.
Revenue rose 3.7 percent on an organic basis to USD 12.92 billion, lifted by Latin America and Asia Pacific. The brewer, however, said it lost market share in the United States. Revenue per hl in Brazil declined due to large state tax increases last year that haven’t yet been passed on to customers. Brazil’s beer market has slumped for the past two years, but AB-InBev said that there were signs of a turnaround this year.
In China, AB-InBev’s market share climbed to over 20 percent benefitting from growth of its premium and super-premium brands. This pushed up volumes by 5 percent and revenue by 11 percent. AB-InBev believes that its brand portfolio, which over-indexes in the faster-growing premium and super premium segments, is well-positioned to continue growing ahead of the industry.
