US: Volumes fall in Europe but Anheuser-Busch InBev sees growth continue in 2012
- Net profits for 2012 rise by 12.9% to US$7.28bn
- Sales in full-year climb by 7.2% to $39.76bn
- Operating profits (normalised EBITDA) increase by 7.7%, hitting $15.51bn
- Volumes flatten in 2012, inching up by 0.3% to 402.6m hectolitres
Anheuser-Busch InBev saw European volumes drop but sales and profits in 2012 remained strong
The ongoing struggles in Central, Eastern and Western Europe have failed to hinder Anheuser-Busch Inbev in its full-year, with sales and profits both rising in 2012.
The brewer said earlier today (27 February) that net profits last year were up by 12.9%, coming in at US$7.28bn, as sales increased by 7.2% to $39.76bn. Operating profits also rose, by 7.7% in organic terms to $15.51bn.
While full-year total volumes came in flat, rising by 0.3% in the year, Central & Eastern Europe saw volumes tumble by 11.3%. Western Europe was also down, by 4.2%, with Latin America North (+3%) and Asia Pacific (+1.9%) redressing the balance. North America was flat, up by 0.6%.
For the last three months of 2012, however, net profits took a hit, falling by 8.5% to $1.79bn. Sales in Q4 rose by 8.8% to $10.29bn with operating profits climbing in organic terms by 9.9% to $4.39bn.
The brewer highlighted a $200m one-off profit gain in the corresponding period a year earlier.
Asia Pacific was the most notable troublespot in the quarter, with volumes tumbling by 8%. The company blamed "severe cold and wet weather" in China, but maintained that it had grown market share in the country in both the quarter and the full-year (volumes up by 1.9%). Group volumes in the three-month period were flat, slipping 0.1%.
"While we expect 2013 to be another year of challenge and uncertainty in the global economic environment, we will continue to work for the long-term growth of our business," the company said. "We will follow our proven business model: investing in the top-line, maintaining strict cost discipline and pursuing margin enhancement.
"We will focus on building a vibrant beer industry, expanding our position in the most important markets, strengthening our brands and consumer connections, and generating superior cash flow to be reinvested in growth."
A-B InBev used the statement to review its ongoing efforts to buy the remainder of Grupo Modelo. A judge in the US agreed yesterday to delay proceedings in the anti-trust lawsuit that the Department of Justice had issued to A-B InBev over the move.
A-B InBev's share price was trading normally this morning, down by 0.6% at 1013 CET.
For an in-depth look at the company's brand and regional performance in the year and quarter, click here.
To read the company's official statement, click here.
Anheuser-Busch InBev (A-B InBev) is facing challenges in the mature US beer category by focusing on premium and craft beer. As the US Justice Department precluded A-B InBev from controlling the lucrat...
This "value set" report combines Beer in the U.S., Imported Beer and Specialty Beer and Microbrewery Markets to create the most exhaustive study of the U.S. beer market available. An $18,000+ value th...
- Diageo's future brighter than present suggests
- Diageo's Q1 Results by Region
- Analysis - Remy's Cognac "dead-cat bounce"
- Focus - Remy Cointreau's H1 Performance by Brand
- Three Questions for the Drinks Industry
- Moët Hennessy unveils first Travel Retail outlet
- Diageo puts Beckham centre stage in Haig Club ad
- United Spirits sees Q1 net loss
- Diageo Q1 sales dip "in line with expectations"
- TWE unveils Penfolds range after CEO's "bold move"