US: Anheuser-Busch InBev on course after Q1 - analyst
Morgan Stanley praised A-B InBev's revenue management
Anheuser-Busch InBev's Q1 results prove its strategy is working despite weaker than expected performance in Brazil, Morgan Stanley said today (30 April).
Analysts at the financial services company highlighted the drinks company's impressive returns from revenue management that helped drive a 4.7% net sales (NS) rise in the first quarter. Morgan Stanley's David Belaunde told just-drinks he estimated that 1.7 percentage point of growth came solely from revenue management.
“The fact that they can achieve such high benefits from revenue management is a huge positive that the market is missing,” Belaunde said in an email.
A Morgan Stanley review of A-B Inbev's Q1 results, released earlier today, said that the sales performance leaves the company in a strong position.
“In the next couple of quarters net sales per hectolitre might moderate because of heightened competitive intensity,” the review said. “However, 4.7% is a very good base to shed a point or so from - and fight for market share until the rest of the market (especially importers) 'get the message'.”
Poor sales in Brazil were due to a VAT catch-up from Q4 into Q1, the review said, and distribution cost growth partly because of a mismatch between capacity and growing packages.
“The key is that, this year, Brazilian operations should see share gains that will support future price increases,” the report said.
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