AB-InBev reports ‘solid’ Q3 growth

AB-InBev has reported solid growth in its third quarter, with revenue up 7.9% in the third quarter of 2015.

Revenue in the 3 month period stands at $11,376 US, boosting the overall revenue in the first nine months to $32,881, up 6.1% organically.

Steve McAllister, president, AB InBev UK & Ireland said the UK had delivered a strong performance, with double-digit growth across the company’s global brands driven by sales in the off-trade. “We are also pleased with our market share performance in this quarter and in the year to date, driven by successful Stella Artois, Corona and Budweiser activations,” he said.

This was likely to see these brands gain market share in the quarter and year to date, the company reported.

Total volumes rose 1.5% in the quarter, driven by good growth in Latin America and on the back of particularly favourable comparables in the USA. Volume growth in Europe was also positive, up 1.4% on the back of growth in its own beer portfolio, up 1.7% and 7.6% across Western Europe. Around two-thirds of this growth was driven by its focus brands – which includes Budwieser, Corona and Stella Artois – in the UK, France, Italy, the Netherlands, and Belgium, it said. However a strong third quarter failed to offset volumes the first half of the year, and volumes are down 4% across Europe in the first nine months.

Stella Artois saw volume rises of 12.9%, with Budweiser up 11.5%, and Corona up 11.1%,w while global brands also grew 11.5% over the quarter.

EBITDA also rose 9.6% organically to $4,403m USD in 3Q, taking growth in the first nine months of the year to 8.3% or $12 526, however profits were hit by currencies.

The beer giant said it expected an acceleration in the growth of our sales and marketing investments in the second half of the year, and remained committed to investing in building its brands and global platforms.

It also approved an interim dividend of 1.60 Euros per share over the fiscal year, up from

The company is set to take-over rival beer company SABMiller, after the brewery accepted AB-InBev’s revised offer of £70m earlier this month, which would make it the largest beer company in the world.