The Belgian brewing combine, Interbrew, has posted a 15% drop in net earnings-per-share (EPS) for the first half of 2003, attributing the decline to the strong euro.
Net profit before restructuring was down by 14.5% at €0.53 per share in the first half. Interbrew said the strength of the euro had reduced EPS by €0.10. Analysts had been forecasting EPS for the first half of around €0.57.
However, Interbrew said there had been some growth in underlying earnings. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 4.7%, while underlying earnings before interest and tax (EBIT) increased by 10.5% on the back of slightly higher volume sales, the company said.
EBITDA including restructuring charges for last year rose by 8.6% to €622m while EBIT was up by 23.8% at €302m. Even though volumes rose by 7.1%, net sales revenues were 4.9% lower at €3.3 billion
In the US, Interbrew said volumes of Beck’s fell by 12.7% which the brewer attributed to the legal dispute with Mexican brewing group, Femsa, which has prevented it from integrating the Beck’s US distribution network with its own. However, Interbrew said volumes of Stella Artois in the US rose by 55.3%.
Stella also grew in the UK, registering a 12.3% increase in volume terms, giving Interbrew a total market share in the UK beer sector of 18.4%.
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