ANHEUSER-Busch InBev reported strong profit growth in the second quarter to end June this year after own beer volumes increased by 20.5 percent and non-beer volumes rose 23.2 percent.
Total second quarter revenue grew 27.6 percent, with strong revenue growth in the US, Europe, Mexico and Brazil in particular, with group revenue per hectolitre (hl) growth of 5.8 percent.
“The consistent execution of our commercial strategy – centered around winning brands, category development and digital transformation – delivered continued momentum in the second quarter, with top-line growth 3.2 percent ahead of second quarter pre-pandemic levels, even in light of ongoing Covid-19 impacts,” Michel Doukeris, the recently appointed chief executive, said in a statement.
The combined second quarter revenues of its three global brands, Budweiser, Stella Artois and Corona, increased 23 percent globally and 19.3 percent outside of their home markets.
Normalised attributable profit was $1.91 billion (R27.8bn) in the second quarter of 2021 versus $921m.
Normalised attributable profit, excluding mark-to-market gains and losses linked to the hedging of share-based payment programmes and the impact of hyperinflation, was $1.51bn in the second quarter, compared with $790m at the same time a year before.
Earnings per share for the half year to end-June 2020 was $1.46, substantially up from $0.04 at the same time in 2020.
In the 2021 half-year period, total volumes grew by 17 percent, with own beer volumes up by 17.7 percent and non-beer volumes up by 12.6 percent.
Looking ahead for the rest of the financial year, Ebitda was forecast by management to grow by between 8-12 percent, while revenue was expected to grow ahead of Ebitda from a combination of volume and price. The outlook was subject to change, depending on the global Covid-19 pandemic.
“We remain focused on investing in and accelerating what is already working: category development, premiumisation, health and wellness, beyond beer and our digital transformation initiatives,” the management said.
The recent appointment of Ezgi Barcenas as the dedicated chief sustainability officer, reporting to the chief executive, would build on the group’s ESG track record.
Innovations to support farmers around the world to be skilled, connected and financially empowered would continue. The blockchain-enabled supply chain platform BanQu was expanded to Latin America, following its success across several markets in Africa.
BanQu gives farmers and recyclers improved security in the delivery and payment process and creates a digital economic identity allowing greater access to formal financial services. It also provided the group with better visibility across its value chain.
The share price slipped 7.1 percent to R946.18 on the JSE yesterday afternoon.
BUSINESS REPORT ONLINE