AB InBev ‘not satisfied’ with profit growth

(Nearly) no growth without Corona

AB InBev’s worldwide third quarter turnover was 11.729 billion dollars (8.5
billion euro), outshining last year’s third quarter by some 14.2 %. However, if
Corona’s purchase is taken out of the equation, the numbers would only have increased 0.9 %.

The spike is mainly due to higher
prices: the like-for-like volume barely rose, coming from 119.638 million
hectoliter in 2012’s third quarter to 119.664 million hectoliter this year. Profits
increased by more than 30 %, from 1.818 to 2.366 billion
dollars (1.3 to 1.7 billion euro).

A decreased cost for all sold items, a 0.3 % drop per hectoliter in the
third quarter, led to the stronger profit growth. Synergizing several units at
Mexican Grupo Modelo (Corona), meant AB InBev could decrease
overall costs, leading to more profit.

American and Brazilian drops

Despite this increased profit, AB InBev’s management was not entirely
satisfied as its two most important beer markets, Brazil and the United States, did not consume as much as last year.
In the United States, the brewer had increased its prices, trying to close the
gap between its luxury and sub-luxury brands. That meant it lost 0.8 % market
share in the third quarter, while Brazil’s
high inflation perturbed that specific market.

The West European beer consumption grew 0.1 %, thanks to a good summer.
Considering the first 9 months of 2013, AB InBev managed to limit the loss in
sales of its own brands to 4.6 %. The
Belgian beer market recovered, with a 0.4 % increase in sales of its own
brands, resulting in a market share growth.  In China, an important market
for AB InBev, the company sold 8.3 % more beer in the third quarter.

AB InBev estimates that the full-year volumes will remain stable or have a slight setback, with continued pressure on the Brazilian volumes and continued growth on the Chinese market.

 (translated by Gary Peeters)