Anheuser-Busch InBev Q4 results – Preview

Anheuser-Busch InBev will announce its full year and fourth-quarter results on Thursday (25 February). Here, just-drinks looks at some of the global beer company’s activities in the three months to the end of December:

• In early October,  Anheuser-Busch InBev joined other FIFA World Cup sponsors in a call for the head of the football organisation to step down.
• A few days later, the company tabled a formal offer for SABMiller of GBP42.15 per share. Later on the same day, the offer was rejected. 
• On 9 October, Anheuser-Busch InBev’s Canadian unit Labatt Breweries of Canada purchased Toronto craft brewer Mill Street Brewery. 
• And by 12 October, the brewer had unveiled an improved takeover offer for SABMiller.
• The following day, Anheuser-Busch InBev won SABMiller’s hand when SAB recommended the offer of GBP44 per share to its board.
• But the deadline to agree a deal was later extended, to allow the companies to iron out the agreement. 
• Finally on 11 November, Anheuser-Busch InBev lined up the long-expected purchase of SABMiller, with talks between the two finally securing a deal.
• On the same day, Labatt Breweries, announced plans to up its “near-beer” interests with the US$350m purchase of the Canadian rights to a range of primarily spirit-based beers and ciders from Mark Anthony Group.
• At the beginning of December, the brewer’s Brazilian subsidiary AmBev was battling investors in a fight for control of a Caribbean beverage company.
• A few days later, Anheuser-Busch InBev was moved to confirm that it was looking to offload SABMiller’s “European premium brands” to ward off regulatory issues that may arise from its pending purchase of SAB.
• On 8 December, the company defended a new incentive programme for US distributors after a media report claimed it will stifle craft beer’s route to market. 
• A week later, AB InBev agreed to sell parts of its distribution territory in two US states.
• Towards the end of the month, the company acquired three craft brewers – two in the US and one in the UK.

YTD & Q3 results highlights

• Nine-month net profits were down 6.2% to US$5.95bn
• Net sales YTD dropped 6.2% to $32.88bn
• Operating profits fell 7% to $12.5bn
• Total YTD volumes flat
• Q3 net profits were down 28% to $1.67bn
• Net sales in three months fell 7% to $11.37bn
• Q3 operating profits were down 7.2% to $4.4bn
• Total Q3 volumes were up

For just-drinks’ full coverage of Anheuser-Busch InBev’s move for SABMiller, click here

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