AB-InBev saved by Brazil (again)
However, when stripping out the effect of asset sales from year-earlier results, earnings before interest, taxes, depreciation and amortization (EBITDA), excluding some items, rose 9.1 percent to USD 3.53 billion.
AB-InBev said trading conditions were “challenging” in North America and western Europe as many consumers faced “economic pressures”.
Beer sales in Western Europe fell 5 percent in the quarter. Own beer volumes in Belgium fell 2.2 percent. For the nine months of 2010 that means a volume decline of 3.4 percent and a loss in market share over the same period 2009.
In Germany, own beer volumes fell 6.5 percent in the third quarter and 8.6 percent in the nine months of 2010. In the UK, own beer volumes were down 9.7 percent in the third quarter.
In the U.S. and Canada combined, beer sales declined only 1.5 percent in the third quarter. Yet, in the U.S., which is AB-InBev’s major market, sales to retailers fell 4.0 percent, AB-InBev said.
Fortunately, beer sales in Brazil once again led gains, rising 12.5 percent in the quarter.
Beer sales were also strong in China and Russia, up 8.1 percent and 8 percent respectively, the brewer said.
The company started selling Budweiser in Russia this year. AB-InBev also said they will work toward “our goal to make Budweiser the first and only truly global beer brand.” They recently launched Budweiser Lime, a line extension in China, and Budweiser Brew N° 66 in the United Kingdom. They plan to launch the iconic brand in Brazil in 2011.
Cost savings in the quarter were USD 140 million, bringing total savings from the merger with Anheuser-Busch to USD 1.81 billion, the brewer said. The company had forecast it would achieve USD 500 million in savings this year, and has saved USD 450 million so far.
