AB InBev sees only 'moderate' 2019 profit growth after weak Q3 | Progresiv
Anheuser-Busch InBev, the world's largest beer maker, reported lower-than-expected profit in the third quarter and said it now only expected moderate profit growth in 2019 due to challenges in the second half of the year.
The producer of Budweiser, Corona and Stella Artois said that its core profit (EBITDA) was unchanged year-on-year, below market expectations of a 3% increase.
AB InBev had cautioned about some weakness after a strong second quarter when the company's beer sales rose at their fastest pace in over five years.
The company described its results in the July-September period as "challenging" and said this was the result of three anticipated factors.
Shipping of beer into China had been disproportionately higher in the second quarter because of promotions, and so they were lower in the third. Costs had risen because of higher commodity costs and the weaker currencies of some of its markets.
Sales and marketing costs were also higher than in the third quarter of 2018. Last year, such costs were skewed more into the first half of the year because of the soccer World Cup.
The company had previously said it expected strong growth of revenue and core profit in 2019. (www.esmmagazine.com)



