AB-InBev profits from Brazil as U.S. sales dip

Good if you can. In the three months to 31 March 2015 AB-InBev increased profits as it lifted prices and sold more premium lagers in Brazil and China, thus making up for sharply lower U.S. volume sales.

On 5 May 2015, AB-InBev reported that first-quarter profit (EBITDA) rose by 11 percent on a like-for-like basis to USD 3.97 billion.

Like all the other major brewers, AB-InBev has felt the impact of the strong dollar, which made revenue fall slightly to USD 10.45 billion from USD 10.61 billion a year ago. The brewer said that the dollar’s appreciation lowered revenue by about USD 1 billion.

Overall volumes declined by 1.2 percent, mainly because of a 6 percent fall in beer sales to U.S. wholesalers, who had built inventories towards the end of last year ahead of union negotiations.

However, the company sold more premium beers and more of its higher priced global brands. This way, AB-InBev has been able to defy the slowdown in its major emerging markets. Volumes of Budweiser, which are now bigger outside than inside the U.S., rose 6.2 percent, with particularly strong growth in Brazil and China.