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AB InBev cuts dividend and pushes back AGM
The world’s largest brewer has halved its dividend payout to investors in an effort to save €1 billion (US$1.1 billion).
AB InBev, the largest brewer by volume, has also pushed back its AGM from April 29 to June 3, simultaneously pushing back the dividend payout from May to 11 June.
The firm has proposed to pay a final €0.5 per share for 2019, instead of the original price of €1 per share it initially proposed.
The brewer said it will save €1 billion, which will also help to pay off the millions in debt still hanging over from its acquisition of SAB Miller in 2016. AB InBev closed its $79 billion deal to BUY SABMiller in October 2016, having sold off a number brands on both sides in Asia and Europe to appease competition regulators. However, the brewer was forced to halve its dividend two years later and use some of the $4 billion generated to pay off $108 billion in debt.
Last month, AB InBev drew down its entire US$9 billion loan facility to stave off the effects of world leaders urging people to stay away from bars and restaurants as coronavirus cases began to soar worldwide.
AB InBev scrapped its 2020 outlook as the impact of coronavirus increased in scale. The brewer has also ceased production at its Mexican brewery Grupo Modelo, which makes Corona, in line with government orders during the Covid-19 pandemic.