ANHEUSER-BUSCH InBev forecast yesterday that its profit would increase this year as consumers had more opportunities to drink outside of their homes after ending 2021 with stronger results than expected, due to higher prices.
The world’s largest brewer, which makes Budweiser, Corona and Stella Artois, said earnings before interest, tax, depreciation and amortisation (Ebitda) would rise by between 4 percent and 8 percent this year, in line with its medium-term growth target.
The Belgium-based brewer, with a large presence in the Americas, said this would be based on both higher volumes and prices, noting the forecast reflected its current view of the Covid-19 pandemic.
Unlike rivals Heineken and Carlsberg, which warned spiralling price hikes could curb beer consumption, AB InBev’s outlook did not mention global inflation or increased input costs.
Chief executive Michel Doukeris said inflation would definitely have an impact on consumers, but was not the only factor for 2022.
“There is a balance to that, which is occasions that were not part of last year that will be back in play this year,” he said.
Doukeris gave the example of the Chinese New Year, which was a much more normal celebration in 2022, and the reopening of venues and events in Europe.
In the US, the company’s biggest market, easing of restrictions meant 35 percent more beer was sold in bars and restaurants in the week of Super Bowl than in 2021, exceeding by 6 percent the pre-pandemic levels.
AB InBev shares gained shortly after trading opened, but were down 3.6 percent in intraday trade in line with a general market sell-off trigged by Russia’s invasion of Ukraine, neither of which were significant markets for the company.
The group reported a 5 percent like-for-like increase in fourth-quarter Ebitda to $4.88 billion (R74.9bn), above the 4 percent average forecast in a company-compiled poll.
The brewer sold more beer in 2021, but the major gain was from price hikes and a consumer shift towards its higher-priced “premium” brands, whose revenues grew by more than 20 percent. Ebitda for the year was up 11.8 percent at the top end of the company’s previous outlook of 10 to 12 percent.
Reuters