Brewers get a boost from emerging markets
The first quarter reporting season is upon us. AB-InBev said on 30 April 2012 that it shipped 1.8 percent more beer and other drinks overall in the first quarter of 2012. The world’s biggest brewer reported its net profit jumped 75 percent, thanks to lower financing costs and taxes as well as higher beer sales. Its core profit (EBITDA) rose 7.4 percent to USD 3.55 billion. That was slightly below the average analyst expectation of USD 3.58 billion.
AB-InBev’s Chief Financial Officer, Filipe Dutra, said the company was benefiting from growing profits in countries like Brazil, where the tax rate is lower than in Europe and the United States.
Revenue meanwhile increased 3.7 percent to USD 9.33 billion, as strong sales in Latin America and Asia offset falling sales in Europe.
After years of decline, U.S. beer shipments grew 1.0 percent in the quarter, aided by mild winter weather, an extra shipping day, restocking after inventories were cut at the end of 2011 and deliveries ahead of an earlier Easter.
However, AB-InBev warned that U.S. sales may fall in the second quarter as it squeezed more shipments into the first quarter to avoid higher transport costs in the summer.
In the first quarter, global Budweiser volumes rose 7.3 percent thanks to growing sales in China, Canada, Russia, and the UK. AB-InBev said Budweiser was exceeding expectations in Brazil, where it was launched last August.
Global Stella Artois sales, meanwhile, grew 1.3 percent, largely on the back of big increases in the U.S. and Brazil. AB-InBev’s attempt to sell more Beck’s beer outside its home market Germany, however, was not successful, with global sales falling 4.2 percent in the first quarter, it was reported
When it comes to volumes sales in the quarter, AB-InBev was outshone by SABMiller. The world’s number two brewer reported a 3 percent rise in underlying beer volumes in the first three months of 2012, as growth in the emerging markets of Latin America, Africa and Asia offset declines in Europe and North America.
The maker of Miller Lite, Castle and Peroni beers admitted on 19 April 2012 that beer volumes at its newly-acquired Australian business Foster’s dipped 4 percent in the first three months of ownership in a tough domestic market.
London-based SABMiller said group revenue in the quarter grew by 10 percent on an organic, constant currency basis, with group revenue per hl up by 5 percent.
Europe’s largest beermaker Heineken said on 18 April 2012 that in the first quarter beer volume grew 4.7 percent on a like-for-like basis, with revenue up 6.8 percent.
Analysts said that while Heineken had benefited from mild winters in much of Europe and North America, an early Easter and an extra leap-year day, volume and revenue growth were still impressive. Revenue per hl increased 3.3 percent.
However, EBIT (beia) declined slightly because of higher costs and a EUR 23 million impairment charge related to an investment by the Heineken-APB (China) joint-venture in a Chinese brewery held for sale.
Carlsberg’s first quarter results will be published on 9 May 2012.
