Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

AB InBev raises forecast after Brazil drives surprise profit rise

Stock MarketsOct 28, 2021 04:36AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logo of Anheuser-Busch InBev is pictured outside the brewer's headquarters in Leuven, Belgium February 28, 2019. REUTERS/Francois Lenoir

By Philip Blenkinsop

BRUSSELS (Reuters) -Anheuser-Busch InBev, the world's largest brewer, upgraded its forecast for 2021 earnings growth on Thursday after posting a surprise increase in third-quarter profit, buoyed by beer sales in Brazil.

The maker of Budweiser, Corona and Stella Artois said it expects core profit or EBITDA (earnings before interest, tax, depreciation and amortisation) to grow between 10% and 12% in 2021, compared with an 8%-12% growth forecast earlier.

The Belgium-based company's shares were up 7.3% at 52.94 euros at 0800 GMT, making them clearly the strongest performers in the FTSEurofirst 300 index of leading European shares, although they are still 20% down from a mid-June peak.

Some analysts had raised concerns about AB InBev even meeting its original guidance. Broker Nomura noted the new guidance was the brewer's first upgrade in several years after it outperformed expectations in every region in the third quarter.

AB InBev said core profit rose 3.0% on a like-for-like basis in the July-Sept period, against an expected 2.3% drop, according to a company-compiled poll.

It said revenue grew 15.3% in Brazil as consumers drank more and purchased higher-priced beers.

Revenue and profits were also higher in Colombia and South Africa, reflecting easing of COVID-19 restrictions, and in Europe as vaccination rates increased.

However, they declined in the United States, where there were supply chain disruptions, as well as in Mexico, a year on from post-lockdown inventory replenishment, and in China, where COVID-19 restrictions disproportionately hit its key regions.

AB InBev's results follow mixed earnings reported by its rivals on Wednesday.

Carlsberg (OTC:CABGY), the world's number three brewer, raised its 2021 profit forecast after higher-than-expected third-quarter revenue, helped by recovery in Europe and China.

By contrast, global number two Heineken (OTC:HEINY) reported a steeper-than-expected drop in beer sales in the third quarter, hit by a lockdown in Vietnam, while retaining its forecast for full-year results at below pre-pandemic levels.

AB InBev raises forecast after Brazil drives surprise profit rise
 

Related Articles

Apple Results Beat in Q1 as iPhone 13 Sales Shine
Apple Results Beat in Q1 as iPhone 13 Sales Shine By Investing.com - Jan 27, 2022 16

By Yasin Ebrahim Investing.com - Apple (NASDAQ:AAPL) reported better-than-expected fiscal first-quarter results as iPhone 13 sales picked up pace after chip supply shortages...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email