Costs of sales per hectoliter will rise by low to mid-single digits, higher than previously forecast, AB InBev said. On a reported basis, however, revenue was down 7%, while net profit fell by 45% to $1.38bn, and volumes were up just 0.9%.
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AB InBev’s board has approved an interim per-share dividend of EUR1.60 for fiscal 2015, an improvement on the EUR1 dividend AB InBev paid past year. Both its top and bottom line are expected to drop from the same quarter past year, when AB InBev earned $1.42 a share on revenue of $12.24 billion.
AB InBev shares rose as much as 2.5 percent to an 11-week high of 110.15 euros, putting them among the strongest in the FTSEurofirst 300 index .FTEU3 of leading European stocks.
“The sales guidance isn’t going to blow the lights out”. The company has a market cap of $188.74 billion. The rise was driven by what the company described as a favorable macroeconomic environment, and especially good performances by Corona, Bud Light and Victor. The union would mean that the two competitors would join to make a formidable drinks giant that is set to churn out annual sales of approximately $73.3bn. “Here is evidence for ABI starting to achieve revenue synergies from a company they have bought in the recent past”, said Mr. Edwardes Jones.
The multinational – based in Louvain, Belgium – is now rounding up financing to secure the deal, valued at about $106 billion.
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Today’s announcement cofirms that AB InBev has completed its confirmatory due diligence review of SABMiller and reconfirmed the financial and other terms of the possible offer. When the world’s largest brewer reports results, analysts are expecting to hear the company earned $1.26 a share on revenue of more than $11.5 billion. No further information was given Friday.
