AB InBev reports better than expected third quarter

BRUSSELS, BELGIUM: The world's largest brewer AB InBev reported better-than-expected third-quarter results despite unfavourable macroeconomic conditions that undermined sales, notably in Brazil and the United States.

Budweiser's St Louis brewery. Image: AB InBev

For the three months to September, the company reported a net profit of US$2.20bn, up 19.6% compared with a profit of US$1.84bn a year ago.

The result was better than expected as analyst forecasts compiled by Dow Jones Newswires had put profit at US$2.10bn. Earnings before tax, interest, depreciation and amortisation grew by 10.5% to $4.66bn against a lower analyst forecast of US$4.61bn.

Third-quarter sales also exceeded expectations, growing three percent to US$11.7bn but total volumes in the third quarter declined by 1.3%.

"We are not satisfied with our top line performance this year which continues to be hurt by macroeconomic headwinds in a number of our markets," the company said. "However, we remain focused on what we can do to influence the markets. We are concentrating on doing the right things to build a healthy business for the long-term," it added in a statement.

AB InBev was formed in 2008 by the merger of Belgian-Brazilian group InBev and US brewing company Anheuser-Busch. It has some of the world's top selling beers including Budweiser and Stella.