AB InBev had disappointing third quarter

AB InBev had disappointing third quarter

AB InBev's third quarter beer sales dropped 2.6 % while its turnover and EBITDA still grew - albeit not as much as expected. The bad weather is considered to be the main cause for the weaker results.

Below expectations

The Belgian company managed a 12.2 billion dollar (9.7 billion euro) turnover, slightly lower than previous expectations at 12.4 billion dollars. EBITDA grew 1.3 % to 4.75 billion dollars (3.8 billion euro), but analysts had expected 5.03 billion dollars (4 billion euro).

 

AB InBev is not concerned at this point as the brewer believes this is a one-off situation and it is not a representation of the company's future. "We have developed a clear strategy focused on sustainable volume and profit growth and we are happy with the road taken", the company stated.

 

Bad weather

The total volume of beer sold has dropped 2.7 % in the previous quarter, while non-beer sales volumes dropped 0.9 %. American wholesale sales plummeted 3.7 %, while American retail sales dropped 1.9 %. Chinese volumes fell 4.9 % because of cold weather in August and September. Brazilian and Mexican sales volumes went up.

 

Belgian sales volumes plummeted 7.2 % while the German sales drop was even higher, at 7.4 %, mostly because of the weaker summer months (July and August).

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