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AB InBev sees profits amid low sales
Budweiser maker AB InBev has seen a slight profit in the first quarter of the year despite a decline in volume sales in the US.
The brewing giant’s core profit rose by 11.1% on a like-for-like basis in the first quarter of the year to US$3.97 billion.
Its overall volumes dropped 1.2% driven by a severe 6% fall in sales recorded by US wholesalers which was partly due to the rise of craft beer which now equals Budweiser’s shipments 16 million barrels and also due to a sales drive last year to build inventories ahead of union negotiations.
However the losses were partly offset by a global volume growth of 4.6% in higher priced brands such as Corona and Stella Artois in markets, notably Brazil and China.
Ab InBev said that the growth of its premium lagers in Brazil should help it grow revenues to a “mid to high single digit percentage” later in the year.
Volumes in the South American country rose 0.4% while
The Chinese market showed a return to volume growth this year, up 4.7% and there are high hopes for the Mexican market where a healthy economy should help drive volume growth.