US: Price increases keep A-B level in year so far

Anheuser-Busch has seen price increases in the US buoy its figures in the latest quarter.

The brewer, which is set to be acquired later this year by InBev, confirmed today (23 July) that sales in the three months to the end of June rose by 4.6% year-on-year to US$4.72bn, with net profit inching up 1.8% to $689m.

US beer segment sales in the quarter increased by 4.5% due primarily to a slight lift in volumes, and a 3.2% increase in revenue per barrel resulting from price increases late last year and in Q1 this year. International beer sales were up 17% primarily on higher sales in China and Canada, although packaging segment sales declined 3% due to lower can manufacturing revenues.

International volume, consisting of A-B brands produced overseas by its breweries and under license and contract brewing agreements, plus exports from the company's US breweries, increased 4.8% for the second quarter and 4% for the first six months of 2008. These increases were credited primarily to increased volume in China, Canada and Argentina, partially offset by lower volume in the UK and Ireland.

Worldwide A-B brands volume, comprised of domestic volume and international volume, increased 1.2% for the second quarter and 1.1% for the first six months of 2008 to 33.8m and 65.0m barrels, respectively.

For the first six months of 2008, net sales were up by 5.3% to $8.82bn, although net profit was flat, up by obly 0.5% to $1.2bn.

"Anheuser-Busch achieved solid sales and earnings per share growth for the quarter and first half of the year," said company president and CEO August Busch IV. "US beer shipments and wholesaler sales-to-retailers increased in the quarter over last year, led by the successful launch of Bud Light Lime and improved performance of other core brands.

"We are encouraged by the success of our marketing and selling initiatives, and are optimistic concerning the outlook for the remaining summer selling season."