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AB InBev Q3 profit drops 7.2 percent

AB InBev Q3 profit drops 7.2 percent

Anheuser-Busch InBev, the world's largest brewer, on Wednesday posted a 7.2 percent decline in net profit for its third quarter due to asset sales last year.
The make of Budweiser, Stella Artois and Beck's said net profit fell to $1.43 billion from 1.55 billion a year earlier. Sales declined to $9.32 billion from $9.76 billion.
The company, based in Leuven, Belgium, sold several units last year to finance its acquisition of Anheuser-Busch of St. Louis, Missouri. The sold assets no longer contribute to this year's profits and growth.
When stripping out the effect of asset sales from year-earlier results, earnings before interest, taxes, depreciation and amortization, or Ebitda, rose 11 percent to $3.53 billion. Many analysts look at Ebitda for a company's performance.
Beer volumes remained mostly stable. Growth in Brazil, China,and Russia offset declines in Western Europe and the United States.
"Year to date, we gained or maintained market share in markets representing more than half of our total beer volumes, including Brazil, China, Russia and the United Kingdom," the company said in a statement.
Like its rivals, AB InBev has been suffering from sluggish sales in the U.S. and Western Europe amid the recession.
"In the United States, sales-to-retailers fell 4.0 percent as high unemployment persists, increasing the economic pressure on many consumers," AB InBev said.
However, its large presence in Brazil has helped the company weather declines in traditional beer markets.
AB InBev said it expects its fourth-quarter results to be "materially higher" than in the third quarter, as year-earlier comparisons become for favorable.


Updated : 2021-08-05 14:39 GMT+08:00