AB InBev reports strong second quarter

Anheuser-Busch InBev’s organic sales came in at 6.2% in the second quarter of 2019 – an acceleration from the 5.9% reported in the first quarter of this year and 5.3% in the fourth quarter last year.

The company also reported improved margins for its premium brands such as Stella Artois and Leffe.

Overall revenues in the second quarter rose to $13.9bn from $13.8bn in the same period last year. Net profits rose to $2.8bn from $2.2bn.

The High End Company, a stable of premium brands that includes Becks, Stella Artois and Leffe, increased revenue by 19.5 per cent. Global brands, which include Budweiser, increased revenues by 8 per cent.  Normalised earnings before interest, tax, depreciation and amortisation stood at $5.86bn versus consensus of $5.69bn, while earnings per share were $1.25.

Net debt was $104bn, unchanged from the end of 2018. The borrowings are largely a hangover from its 2016 purchase of rival SABMiller, and over the past year it has halved its dividend and refinanced its debt maturities in order to bring them down.

Said Paula Lindenberg, President, Budweiser Brewing Group UK&I,“Our UK business has had a great second quarter, with strong volume growth and high single digit net revenue growth, boosted by the performance of our global brands, Budweiser, Stella Artois and Corona. These brands are embedded in popular culture, and momentum continues with our announcement earlier this week that Budweiser will be the new Premier League beer partner.
“We have enjoyed a fantastic start to the summer, which is a huge time for beer sales. We couldn’t have been prouder to have supported the England Women’s football team as they made it all the way to the semi-finals of the FIFA Women’s World Cup 2019™. Stella Artois’ sponsorship of Wimbledon and Royal Ascot, as well as Budweiser’s sponsorship of Pride in London, underlined our commitment to be the perfect ingredient when people come together for a great time. And we’re looking forward to a whole season of great moments when the Premier League kicks off next month, with Budweiser as a partner.
“Corona is seeing double-digit growth across total trade and recently launched its Protect Paradise campaign, pledging to clean one square metre of British coastline for every one of a million limited-edition ‘Protect Paradise’ four-packs sold this summer, resulting in 68 beach clean-ups organised with Parley for the Oceans and involving consumers, volunteers and our employees.  
“We have also seen demand for no alcohol beer continue to rise, with growth at 25 per cent year to date and Beck’s Blue the number one beer in this category. In the low-alcohol segment, Camden Town Brewery launched its new 3% ABV beer Week Nite and Bud Light is growing by double digits in both the on-trade (pubs and bars) and off-trade (retail). The growth of no-and-low alcohol beers highlights that consumers are looking for moderation without compromising their social lives. 
“Year to date, we are the UK’s second largest brewer, moving up from third place and we have lots planned to keep up the momentum. By offering our customers a broad range of premium drinks and linking our brands to key cultural moments throughout the year, we have our eyes firmly set on the top spot.”
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