Bud brewer AB InBev gets huge Q1 Brazil boost
BRUSSELS, May 5 (Reuters)
World No. 1 brewer Anheuser-Busch InBev (ABI.BR) earned more than expected in the first quarter of 2010 as beer sales surged in booming Brazil and forecast stronger growth in the second half of the year.
The brewer of Budweiser, Stella Artois and Beck's said on Wednesday core profit (EBITDA) rose a like-for-like 5.1 percent in January-March to $3.09 billion, beating a forecast for $2.98 billion in a Reuters poll.
AB InBev had previously forecast a low single-digit percentage rise due to a U.S. market hit by bad weather, a tripling of beer tax in Russia, and higher emerging market commodity prices.
The company's shares opened down, but surged to a three-week high by late morning. At 1440 GMT, they were up 2.5 percent at 36.995 euros, making them the second-strongest in the FTSEurofirst 300 index of Europe's leading stocks .FTEU3.
Analysts said the initial weakness was due to concerns about non-recurring items, which left net profit lower than expected, but a bullish mood about sales in Brazil, where it brews Brahma and Skol, eventually prevailed.
"Brazil was amazingly strong," said Gerard Rijk of ING.
Trevor Stirling of Bernstein Research said AB InBev had got a three percentage point gain from raising its market share in Brazil, the rest largely from vibrant industry expansion.
Overall, the company sold 0.8 percent more barrels, cans and bottles, with a 15.9 percent surge in Brazil, where it has two-thirds of the market, partly offset by a 6.8 percent fall in the United States, where it accounts for half of all beer sales.
AB InBev said volume growth in the second quarter would be in line with that of the first. EBITDA growth would be lower, largely due to marketing costs for the soccer World Cup starting in June, for which Budweiser is the official beer.
"We continue to expect third quarter volume and EBITDA growth above first half levels, increasing further in the fourth quarter," Chief Financial Officer Felipe Dutra told a conference call.
AB InBev, which announced on Tuesday its Bud Light would take over sponsorship of the U.S. National Football League in 2011, said volume comparisons would be easier in the second half, particularly in the United States.
Source: reuters.com
BRUSSELS, May 5 (Reuters)
World No. 1 brewer Anheuser-Busch InBev (ABI.BR) earned more than expected in the first quarter of 2010 as beer sales surged in booming Brazil and forecast stronger growth in the second half of the year.
The brewer of Budweiser, Stella Artois and Beck's said on Wednesday core profit (EBITDA) rose a like-for-like 5.1 percent in January-March to $3.09 billion, beating a forecast for $2.98 billion in a Reuters poll.
AB InBev had previously forecast a low single-digit percentage rise due to a U.S. market hit by bad weather, a tripling of beer tax in Russia, and higher emerging market commodity prices.
The company's shares opened down, but surged to a three-week high by late morning. At 1440 GMT, they were up 2.5 percent at 36.995 euros, making them the second-strongest in the FTSEurofirst 300 index of Europe's leading stocks .FTEU3.
Analysts said the initial weakness was due to concerns about non-recurring items, which left net profit lower than expected, but a bullish mood about sales in Brazil, where it brews Brahma and Skol, eventually prevailed.
"Brazil was amazingly strong," said Gerard Rijk of ING.
Trevor Stirling of Bernstein Research said AB InBev had got a three percentage point gain from raising its market share in Brazil, the rest largely from vibrant industry expansion.
Overall, the company sold 0.8 percent more barrels, cans and bottles, with a 15.9 percent surge in Brazil, where it has two-thirds of the market, partly offset by a 6.8 percent fall in the United States, where it accounts for half of all beer sales.
AB InBev said volume growth in the second quarter would be in line with that of the first. EBITDA growth would be lower, largely due to marketing costs for the soccer World Cup starting in June, for which Budweiser is the official beer.
"We continue to expect third quarter volume and EBITDA growth above first half levels, increasing further in the fourth quarter," Chief Financial Officer Felipe Dutra told a conference call.
AB InBev, which announced on Tuesday its Bud Light would take over sponsorship of the U.S. National Football League in 2011, said volume comparisons would be easier in the second half, particularly in the United States.
Source: reuters.com
