AB InBev beats profit predictionsBy Neal Baker
AB Inbev has reported profit growth this quarter that has exceeded industry estimates, as sales in Brazil related to the World Cup helped to balance out a US slump.
Earnings before deductions rose 9.5% to $4.85 billion (£2.66bn), significantly higher than the pre-results estimate of 8.2% which was reached by an average of industry expert predictions.
The company shares have been trading 0.6% higher since the result announcement on Thursday (31 July), which brings the total rise for the year to 6.5%.
Chief financial officer Felipe Dutra said it will be “extremely difficult” to maintain the growth rate in Brazil, where it is said to control around two thirds of the beer market with popular brands like Brahma.
As the drinks business has reported, analysts and investors have speculated that AB InBev could take over its leading competitor SABMiller.
Bloomberg have reported that Dutra said the company will “always be ready to look at opportunities if and when they arise.”
Beer volume rose in Mexico, Brazil and Asia Pacific, whereas US sales to wholesalers fell 3.4% after AB InBev sold more to distributors in the prior period ahead of possible industrial action. Sales to retailers slid by 1%.