US: A-B set fair for 2007 despite cost pressures
Anheuser-Busch has reaffirmed its full-year earnings per share growth despite the rising costs of commodities.
Speaking in New York today (29 November), CFO and vice president, Randolph Baker, conceded that the commodity cost environment "has not been favourable", and that "mitigating the impact of commodity cost pressures is a high priority for Anheuser-Busch".
The brewer said it still believes earnings per share growth in 2007 should exceed its 7% to 10% long-term objective.
"The last two years have been a period of considerable change in the beer industry and especially at Anheuser-Busch," Baker said. "Anheuser-Busch has taken significant steps to adjust to the changing beer consumer. We have substantially expanded our portfolio. To support this broadened portfolio, we have transformed our selling system to make it both more personal and high tech at the same time.
"We have also been making changes in marketing and media, with more significant changes planned for next year. Anheuser-Busch is clearly better positioned for long-term growth due to these changes than we were two years ago."
Going forward, A-B will be introducing price increases on the majority of its US beer volume early next year, with increases in several states occurring in the fourth quarter 2007.
Rising raw material costs have been a feature of numerous companies' results over the past few months. As Jessica Harvey writes, some companies have been able to bolster themselves against this trend ...
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