AB InBev Q3 Profit Climbs 30%, Warns On Brazil

(RTTNews) - Belgian brewer Anheuser-Busch InBev, known as AB InBev (BUD, AHBIF.PK), Thursday said profit for the third quarter increased 30 percent from last year, with over 14 percent growth in revenues. The company now expects full-year industry volume growth in Brazil to be at the lower end of its previous guidance.

Profit attributable to equity holders of AB InBe rose to $2.366 billion from $1.818 billion. Earnings per share grew to $1.44 from $1.13 a year ago.

Normalized profit attributable to equity holders of AB InBev in nominal terms was $2.205 billion or $1.36 per share while it totaled $1.843 billion or $1.16 per share last year.

On average, 4 analysts polled by Thomson Reuters expected earnings of $1.32 per share for the quarter. Analysts' estimates typically exclude special items.

The group said its earnings were driven by growth of the underlying business and the combination with Grupo Modelo, including the cost synergies, despite the significant FX translation headwinds.

Revenues grew to $11.729 billion from $10.269 billion for the same quarter of last year. Wall Street expected revenues of $12.05 billion.

The brewer said its top line performance in 2013 continues to be impacted by macroeconomic headwinds in several markets.

Revenue per hecto liter growth was 4.2 percent, helped by revenue management initiatives and brand mix. On a constant geographic basis, revenue per hl improved 4.9 percent.

Total volumes slid 1.3 percent, with own beer volumes decreasing 1.4 percent, while non-beer volumes slid 0.8 percent.

The company's Focus Brands volumes grew 0.3 percent, with the global brands up 5 percent, led by Budweiser that advanced 8.1 percent with strong growth in China, Brazil and the U.K.

Global volumes, excluding the U.S., of the new flagship brand Corona grew 3.7 percent in the quarter, due to strong performances in Mexico and the brand's main export markets outside the U.S.

US beer-only revenue per hl remained strong, growing 3.2 percent in the quarter. The company's beer industry volumes in Brazil declined by 5 percent, amid a weak economy and a challenging consumer environment. Beer volumes in China grew 8.3 percent, driven by industry growth and market share gains.

Based on the quarterly results, the brewer expects full-year industry volume growth in Brazil to be at the lower end of the range of flat to low single digit decline. The company continues to expect solid industry volume growth in China in 2013.

In addition, AB InBev declared an interim dividend of 0.60 euros per share for fiscal year 2013, payable on November 18, with the record date as November 15.

The stock fell 1.5 percent to settle at 74.55 euros on Wednesday.