Belgian-Brazilian beer brewer AB InBev has not been able to meet expectations in the first quarter, mainly because of disappointing Brazilian sales. Preparations for the SABMiller merger have also had their impact on profit numbers.
Europe performed well
Over the course of the first three months of 2016, AB InBev sold 104.9 million hectoliters of beer, a 1.7 % like-for-like drop compared to the year before. Mainly Brazil underperformed, with a 10 % drop, while Mexico managed a 13 % growth. AB InBev’s Chinese performance outdid the overall market, but it was still a 1.1 % drop. American volumes also dropped slightly, although the overall market did grow. Europe did experience a 2.5 % growth.
Weaker sales meant AB InBev’s turnover also dropped 13 % in the first quarter, down to 9.4 billion dollars (8.2 billion euro). Organically, the company managed a 3.1 % turnover growth, but that was well below analysts’ expectations, which stood at a 6.1 % organic turnover growth.
In 2015’s first quarter, AB InBev managed a 2.29 billion dollar (nearly 2 billion euro) net profit, but that dwindled to 844 million dollars (735 million euro) this year. The company did write down 1.2 billion dollars (1 billion euro) in costs regarding the SABMiller acquisition procedure, which should be finalized in the second half of 2016.
