Beer volumes fell 10 percent in the quarter overall from a year earlier, but did recover in April, the brewer said. Earnings per share dropped to $0.51, compared to $1.40 the same quarter a year-ago, and well below the analyst EPS estimate of $0.91. The shares closed last trade at $123.05, implying that analysts see shares rising about 11.24 per cent in 12 months’ time.
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Anheuser-Busch InBev, set to increase its global beer leadership by buying SABMiller, reported lower than expected earnings in the first three months after it sold 10 percent less beer in its second largest market, Brazil. “However, our business in Brazil experienced one of its most challenging quarters in many years, as anticipated”. In the USA, beer volumes grew by 0.7% during the quarter, but total volumes in the US declined by about 2% from the same quarter in 2015. It has agreed to distribute the product itself to ease regulatory concerns that the companies may coordinate market activity, the ACCC said.
Kettle said the ACCC had likely forgone its opportunity to formally “take a good look under the hood of the car” through an SOI, because it had already garnered enough information through its consultation with AB InBev and SABMiller.
Despite the weak first quarter, AB InBev said it still expects revenue in Brazil to grow by “mid-to-high single digits” for the full year.
“We believe Bud Light is heading in the right direction even though a lot more has to be done to return the brand to growth”, Dutra said.
The brewer reiterated that it expects to close its $108 billion takeover of rival SABMiller Plc in the second half of the year.
Anheuser-Busch InBev SA/NV, a brewing company, engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks worldwide.
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AB InBev has made many proposals globally to appease regulators, including the sale of SABMiller’s 58% stake in MillerCoors to Molson Coors, which had originally entered into the joint venture with SABMiller.
