World’s largest brewer AB InBev toasts better-than-expected lockdown sales
Anheuser-Busch InBev, the world’s largest brewer, has reported a better-than-expected core profit in the final quarter of 2020 and said it expected earnings to be “meaningfully” better this year.
The brewer behind major beer brands including Budweiser and Stella Artois saw revenue hike 4.5 per cent in the three months to December, marking a strong recovery after a difficult year of pub closures.
Earnings before interest, tax, depreciation and amortisation (Ebitda) slipped 2.4 per cent to $5.07bn in the fourth quarter — above the average forecast in a company-compiled poll of $4.80bn.
Total volumes grew by 1.6 per cent over the quarter, which AB Inbev said showed “momentum” in its key markets.
However, the late-year boom in beer sales did little to offset the overall hit from the pandemic, which pushed down total revenue for 2020 by 3.7 per cent. Europe, the Middle East and Africa was the worst-affected region for the brewer, which saw beer sales slump 6.5 per cent last year.
It saw significant declines in markets such as South Africa, which imply,emted three outright government-mandated bans on the sale of alcohol last year.
AB Inbev said its overall revenue for 2020 was “substantially impacted by the Covid-19 pandemic… [including] on premise shutdowns and mobility restrictions”.
The Corona producer said it would still recommend a full-year dividend of €0.50 per share, subject to shareholder approval at the firm’s annual general meeting in April.
The brewer added it expects sales to “improve meaningfully” and spring the company back into growth this year.
It toasted recent additions to its investment portfolio, including digital sales platforms Bees and Ze Delivery,
“We are now more closely connected than ever to the 6m customers and 2bn consumers we serve worldwide through our clear commercial strategy, revamped innovation process, digital platforms and ongoing operational excellence,” said chief executive Carlos Brito.