A glitch in the system
InBev’s information policy leaves a lot to be desired. This year’s financial results press conference was “attendance only”. No live webcast. And you thought we live in the Information Age. Not in Leuven, apparently.
Corblimey! What pearls of wisdom InBev’s CEO Carlos Britos may have shared with the assembled Brussels press corps we shall never know. Us foreigners who could not make it over to Leuven for the keenly awaited publication of InBev’s 2007 full year results had to make do with InBev’s press release only.
If we were allowed to joke, we could blame InBev’s inability to provide a live webcast on its having outsourced its IT department. No one left to do it. However, what is slightly odd is that in past InBev has pushed hard to disseminate its information via the web. So why this regression to the stone age of press conferences when CEOs liked nothing more than to face a room full of lowered heads scribbling furiously?
Actually, a few explanations spring to mind. Alas they’d better not be published.
Let’s say that InBev hopes to set a trend. Let’s call it CHANGE. That’s why we eagerly await InBev’s future results announcements with packed briefcase and plane ticket in hand.
On 28 February, InBev posted a forecast-beating full-year net profit on higher sales, driven by its Latin American and central and eastern European operations.
The brewer reported full-year net profit of EUR 2.20 billion, up from EUR 1.41 billion a year earlier. Net profit was boosted by non-recurring items totalling EUR 374.0 million, most of it coming from the sale of its Belgian and Dutch real estate assets.
EBITDA before non-recurring items rose to EUR 4.99 billion from EUR 4.24 billion. The EBITDA margin on the same basis rose 274 basis points to 34.6 percent from 31.9 percent.
Sales rose 7.2 percent to EUR 14.43 billion from EUR 13.31 billion. Beer and soft drink volumes increased 5.2 percent to 271 million hl.
The group paid a dividend of EUR 2.44 per share, up from EUR 0.72. It said it has changed its capital structure to provide for greater dividend payouts.
The current dividend policy allows for the payment of, on average, between 25 and 33 percent of the previous fiscal year’s net profit. Going forward, the board is implementing a “more progressive” dividend approach in which the 33 percent maximum payout is removed.
The group has also launched a new share buyback programme of EUR 500 million over 12 months.
On guidance, InBev said it is committed to EBITDA margin expansion, with cost cutting a priority.
