BRAZIL: AmBev sales, profits up in H1

AmBev, the division of Anheuser-Busch InBev, has reported solid rise in net sales and profits for the first half of 2009.

Net sales for the six months to the end of June rose by 10% on an organic basis to BRL11bn (US$6bn), compared to BRL9.5bn in the same period of 2008, AmBev said today (13 August).

Higher pricing and a 4% rise in volume sales drove the revenue growth, the brewer and soft drinks group said. Beer and soft drinks volume sales rose by 7% in the group's native Brazil for the second quarter.

Net profits for the half-year rose by 22% to BRL2.76bn. Operating profits for the period rose by 20% on an organic basis, to BRL5.17bn, echoing strong margin expansion during the same period for parent group A-B InBev.

Group CEO João Castro Neves said that the firm expects "a much tougher H2", but that it was pleased with the first half performance.

"Latin America South continues to deliver strong results despite poor industry performance across most markets, mainly in soft drinks," he said.

In Canada, AmBev's Labbatt business reported a 14% rise in operating profits, with volumes up 2% and price rises driving sales growth ahead of inflation.

The group's business in the north of Latin America, known as HILA-ex, reported operating losses of BRL9.9m for the second quarter,  after also struggling in the group's first quarter.

Neves remained confident, however: "Although in the very early stages, I am pleased with the initiatives we have launched to move us closer to our goal of delivering break-even EBITDA in the region."

In its outlook, AmBev said that it is "cautiously optimistic".

The group remains embroiled in a dispute over selling practices with Brazil's competition regulator.

For AmBev's Q1 results, click here.