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Expenses take toll on AB InBev profits
AB InBev’s Q2 profits fell short of forecasts thanks to marketing drives and transport costs but hopes are high for an improved second half of the year.
The cost of marketing new brands in the US and the increase in transport costs across the Americas meant that the Belgian brewer recorded a core profit of US$3.59 billion from April-June, down from $3.75bn last year and a little below the projected $3.67bn.
Net profits did rise however from $1.45bn a year ago to $1.96bn, which was over the $1.79bn expected by the market.
AB InBev further boosted its American market earlier this year with a $20bn buy-out of Grupo Modelo, a move which will augment the region’s importance for the brewer. It already accounts for 75% of AB InBev’s profit and 85% of its earnings.