AB-InBev revenues up but beer volumes down

AB-InBev, the world's biggest brewer, said on 31 October 2012 that in the third quarter (July to September) revenues rose by 9.1 percent to USD 10.3 billion, despite a slight decrease in the global volumes of sales. Total volumes dropped 0.3 percent, the brewer reported, after having declined 0.1 percent in the previous quarter.

The brewer’s EBITDA was also somewhat disappointing to investors. At USD 3.98 billion it was slightly up year-on-year, but below the analysts’ consensus of EUR 4.06 billion.

Following a tax hike in Brazil, AB-InBev’s local unit AmBev, with some two-thirds of the market, saw its share shrink by 1.1 percentage points, which was mainly due to the timing of its price increase, the brewer said. Brazil’s beer industry volumes grew 1.8 percent in the quarter, while AmBev’s own beer volumes nudged up 0.2 percent.

In Western Europe, profits increased 9.7 percent on a like-for-like basis even as volumes declined.

Fortunately, volumes in the U.S. market had “'shown encouraging improvements” this year so far, the brewer reported. It added that company share gains in the period were boosted by new product launches such as Bud Light Platinum and Bud Light Lime Lime-A-Rita. However, sales of Budweiser saw a 7 percent decline this past quarter.

In China, beer volume grew by 2.2 percent, with AB-InBev's key brands of Budweiser, Harbin and Sedrin rising by 9.2 percent in the quarter.