Anheuser-Busch InBev Posts Higher Q4 Profit

(RTTNews) - Belgian brewer Anheuser-Busch InBev, known as AB InBev (BUD, AHBIF.PK) Wednesday reported a sharp increase in the fourth-quarter profit, helped by about 5 percent growth in revenues. However, total and own beer volumes declined 1.7 percent from last year.

The company noted that it faced some challenging macro-economic conditions in a number of its markets, which resulted in a volume performance below its expectations.

For the fourth quarter, profit attributable to equity holders increased to $2.52 billion or $1.54 per share from $1.74 billion or $1.09 per share in the previous year.

Normalized profit attributable to equity holders of AB InBev in nominal terms was $2.37 billion or $1.46 per share, while the firm posted $1.77 billion or $1.10 per share a year earlier.

Three analysts polled by Thomson Reuters expected earnings of $1.31 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 4.6 percent to $11.71 billion from $10.29 billion in the preceding year. Wall Street expected revenues of $11.70 billion for the quarter.

Global Brands total revenue increased 3.3 percent to $43.2 billion, mainly due to good performance by Global Brands, and revenue management initiatives that drove higher revenue per hecto liter.

Revenue per hecto liter growth was 8.4 percent in the fourth quarter on a constant geographic basis, helped by favorable brand mix and revenue management best practices, the firm said.

During the quarter, total and own beer volumes declined 1.7 percent, with 2.0 percent drop in own beer volumes and unchanged non-beer volumes. The brewer said its Focus Brands volumes decreased 2.1 percent, with 2.9 percent growth in its global brands.

Looking ahead to full-year 2014, the company anticipates an improvement in the trend of U.S. industry volumes compared with 2013, driven by a stronger economy, partly offset by challenging winter weather in the first quarter 2014.

AB InBev board also proposed a final dividend of 1.45 euros per share, to share holders of record on May 7, 2014, payable on May 8. This will bring the total dividend for fiscal 2013 to 2.05 euros per share, a 21 percent increase over 2012.

In Brussels, the shares closed Tuesday's regular trading at 74.27 euros, down 0.52 percent.