AB InBev’s reported third-quarter revenue of $15.0bn, up 2.1% on an organic basis (market consensus: 3.0%). Growth was driven entirely by higher average prices as total volumes slipped 2.4% lower, largely due to double-digit declines in Asia.
Underlying operating profit rose 8.9% to $4.1bn, helped by more sales of premium beer, production efficiencies, and a tight grip on operational costs.
Full-year cash profit (EBITDA) guidance has been raised from 4-8% to 6-8%, which is more in line with current market forecasts of 8.4% growth.
A $2bn share buyback programme has been confirmed and is expected to complete within the next 12 months.
The shares fell 3.8% in early trading.
Our view
HL view to follow.
AB InBev key facts
All ratios are sourced from Refinitiv, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is not advice or a recommendation to buy, sell or hold any investment.No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.Non - independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place(including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing.Please see our full non - independent research disclosure for more information.