Brewer AB InBev forecasts 2019 growth after drop last year
The world’s biggest brewer AB InBev saw combined revenues from its three global brands — Budweiser, Stella Artois and Corona — grow by nine percent last year (Drew Angerer)
Brussels (AFP) – The world’s biggest brewer, AB InBev, on Thursday forecast strong growth this year after an increase in profit for the fourth quarter of 2018 despite an overall drop last year.
In 2018, the Belgian-Brazilian beer behemoth, which bought its competitor SABMiller in 2016, saw its profits decline by 14.7 percent to $6.793 billion (5.962 euros).
However, it recorded $2.497 billion in the last three months of the year, up from $2.450 billion in the same quarter of 2017.
The company also said it recorded “healthy volume, revenue and market share growth in important markets” such as Mexico, China, western Europe, Colombia and several African countries, including Nigeria.
But it said a “weak microeconomic environment” largely led to lower-than-expected results in emerging markets Argentina, Brazil and South Africa.
South Africa was hit by other factors like unexpected tax increases.
“Unfavourable currency volatility has slowed our deleveraging pace,” the company said in a statement.
“We have always said that we are never completely satisfied with our results, and 2018 is no exception.”
But it said: “We are confident in our strategy and plans to grow our business by creating value from seed to sip and delivering sustainable top and bottom line growth in 2019 and beyond.”
It highlighted revenue growth of 4.8 percent to $54.62 billion last year.
EBITDA, or earnings before interest, taxes, depreciation and amortisation, grew 7.9 percent to $22.080 billion.
Combined revenues from the three global brands — Budweiser, Stella Artois and Corona — grew by nine percent last year.
“Budweiser was the most talked about brand on digital and social media during the 2018 FIFA World Cup Russia,” it said, adding there were an estimated five billion social media impressions.
The company attributed eight percent of global beer volume last year to no- and low-alcohol beer, “leveraging global health and wellness trends.”
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