BELGIUM: Interbrew interim profits falls 18%
EBITDA, EBIT were also down 12.1%, 26.7% respectively.
Interbrew's net profit was hurt by the sale last December of Carling Brewers to Adolph Coors, and a €61m write-down to cover costs from a distribution deal with Tradeteam, a unit of Exel PLC of the UK.
Sales fell 1.8% to €3.417 billion from €3.48 billion, in line with expectations. Interbrew said it had been hurt also by poor weather in Russia and a legal battle with its business partner, Mexico's second-ranked brewer Fomento Economico Mexicano SA (FMX), or Femsa.
Femsa has obtained a US court ruling preventing Interbrew from selling its leading brand Beck's through the Labatt USA distribution network. The Belgian brewer is appealing the ruling, but it isn't clear when it will be able to take advantage of Labatt's large distribution channels.
"The first half of the year was characterised by underlying business growth, despite capacity constraints in Russia, and the non-integration of Beck's in Labatt USA," Interbrew said.
"The uncertainty resulting from the delay in the integration process has had a negative impact on Interbrew's sales performance. In the first half, distributor depletions were off 4% nationally, but they did improve in July and August."
In Western Europe, a region with low or declining market growth, Interbrew realised a 1.7% organic volume growth and 2.3% organic net turnover growth. Organic EBITDA grew 9.3%, thanks to a combination of price and mix improvements, plus good cost management. Market shares have been stable or growing in all countries
In Emerging Markets, organic volume growth of 2.7%, plus mix improvements; have led to an organic net turnover growth of 6.5%. "Strong sales growth in the core segment was achieved in the Czech Republic, Hungary and Croatia. This strong growth helped offset weaker performances in Bulgaria, Romania and Montenegro, where difficult economic conditions have brought on a shift towards the value segment," the company said.
Looking ahead, Interbrew said Interbrew remains on track to meet its long-term objectives and reiterates its target of double-digit, average annual growth in EPS before goodwill amortisation, from 2000 to 2004, irrespective of scope changes.
"Poor weather conditions in Western and Central Europe, combined with the investments we made in long-term sustainable growth, lead Interbrew to target an EPS pre-goodwill and pre-restructuring of €1.50 for the current year," it said in a statement.
The global roll-out of InBev's Brazilian beer, Brahma, adds a third premium brand to the global brewer's international portfolio but some observers have suggested it's an unnecessary step which threat...
SUN Interbrew is looking to relinquish its stake in Pivoindustriya Primorya....
Interbrew UK has poached two marketing managers from rival brewers....
Interbrew is to place a £1m support package behind its Czech brand Staropramen in the UK....
InBev has announced that the deadline for the receipt of acceptances for the recommended offers of US$33.41 for the remaining Class A (non-voting) shares in SUN Interbrew, along with Class A Securitie...
SUN Interbrew is looking to buy into a Siberian brewer, according to local press reports....
Interbrew UK has announced plans to launch a new speciality beer....
InBev has extended the deadline for the receipt of acceptances for the recommended offers of USD33.41 in cash for the remaining shares and Securities that it does not already own in SUN Interbrew (SIL...
- A Wild Geese, Pernod Ricard conspiracy theory?
- Coca-Cola Beverages Africa - A new powerhouse
- Can craft breweries compete in lager arena?
- Remy Cointreau's Q1 performance by brand, region
- SABMiller's Q1 2017 results - Preview
- Diageo starts formal talks over UK pension cuts
- New Hendrick's Gin would have to be "unusual"
- AB InBev faces US$7bn price rise for SABMiller
- Brown-Forman takes distribution in Spain in-house
- AB InBev halts VAIP incentive plan
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages
- Global RTD insights - market forecasts, product innovation and consumer trends
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends