AB InBev sells less beer but at higher prices
By Robert Laing - Oct 26th 2017, 09:15
Raising beer prices helped Anheuser-Busch InBev grow its South African revenue 3.9% in the September quarter, despite the volume it sold falling 2.5%.
The world’s largest brewer reported on Thursday morning that its total revenue grew 3.6% to $14.7bn for the September quarter, while the volume of beer it sold globally declined 1.2% to 161-million hectolitres from the matching quarter in 2016.
AB InBev shareholders would receive a €1.6 interim dividend for the first half of its financial year, the company said in its statement.
The group, which acquired SABMiller, said it raised its revenue per hectolitre in SA by 6.6%, and the 3.9% decline in volumes sold "primarily resulted from the phasing of inventory levels between the second and third quarters due to the timing of our price increases".
For the nine months to end-September, its South African revenue grew 7.5% with revenue per hectolitre growth of 5.3% and volume growth of 2.1%, AB InBev said.
"Our high-end portfolio continued to deliver strong growth in Stella Artois and Corona, and we recently began seeding Budweiser into the market to complete our global brand portfolio in SA."
"Castle Lite performed well this quarter with volumes growing by double digits, as the brand focuses on growing the in-home consumption occasion heading into the summer season. Flying Fish also continues to perform extremely well, targeting mixed gender occasions and launching ‘Flying Fish Chill’ in September, the first light flavoured beer in SA," the South African portion of the results statement said.
AB InBev said its beer volumes suffered from the hurricanes that hit the US.
"We estimate that industry sales to retailers (STRs) in the US declined by 1.7% in the third quarter and by 1.3% in the nine months to end-September. Our own STRs were down 3.4% in the quarter and down 3.1% in the first nine months of 2017, while our sales to wholesalers (STWs) were down 6.4% in the quarter and down 4% in the nine months to end-September."
"The gap between STWs and STRs is attributable to disruptions from major hurricanes in Texas and Florida, but we expect this gap to be reduced in the fourth quarter as STWs and STRs tend to converge on a full-year basis."© BusinessLIVE MMXVII
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