FDBusiness.com

AB InBev Continues to Focus on Premiumisation

 Breaking News
  • Campbell Soup Company CEO Retires US food group Campbell Soup Company has announced that Denise Morrison, President and Chief Executive Officer, has chosen to retire with immediate effect. Keith McLoughlin, a Campbell Board member since 2016, has been named interim CEO and will also remain a member of the Board to facilitate an orderly transition in management while recently elevated [...]...
  • Valio Establishes New Business Units in China Valio, the Finnish dairy co-operative, is stepping up its activities in China with the opening of a new head office in Shanghai. The newly established head office will focus on serving the Chinese market. Besides the Ingredient business units, Valio China has also established the new business units of Retail and Food Service. According to Euromonitor [...]...
  • Nestlé Launches Global Initiative to Help Children Lead Healthier Lives Nestlé has announced its global ‘Nestlé for Healthier Kids’ initiative. The program includes the further development of healthier products and advice for families on nutrition and exercise. It aims at helping 50 million children lead healthier lives by 2030. Since its foundation, Nestlé has been committed to helping parents and caregivers provide the right nutrition to their children. [...]...
  • Dunnes Stores Simply Better Collection Recognised at International Excellence Awards Dunnes Stores’ Simply Better Collection will be presented with five prestigious accolades at the Private Label Manufacturers Association (PLMA’s) 2018 International Salute To Excellence Awards, taking place later this month in Amsterdam. This is the third year in a row that the Dunnes Stores Simply Better Collection has been recognised for excellence at the PLMAs, last year [...]...
  • CHEP Enables Highland Spring Group to Achieve Substantial Environmental Savings Highland Spring Group, the UK’s largest supplier and producer of natural source bottled water, is enjoying significant environmental savings thanks to the use of CHEP’s pooled pallets within its supply chain. Last year, the owner of brands such as Highland Spring, Speyside Glenlivet and Hydr8, signed a three-year contract renewal with CHEP, the supply chain [...]...

AB InBev Continues to Focus on Premiumisation

AB InBev Continues to Focus on Premiumisation
July 31
12:18 2017

Anheuser-Busch InBev has reported a 4.4% increase in revenue to $27.10 billion for the first half of 2017 with revenue per hl growth of 4.2%, as combined revenues of the group’s three global brands – Budweiser, Stella Artois and Corona – rose by 10.6%. Continued focus on driving premiumisation is allowing AB InBev to generate top-line growth in emerging as well as developed markets.

First half EBITDA grew by 9.0% to $10.16 billion and EBITDA margin expanded by 161 bps to 37.5%. This growth is attributable to a healthy top-line growth, helped by strong synergy capture, although partly offset by the anticipated CoS (Cost of Sales) pressure.

The integration of the SAB Miller acquisition is progressing well, with synergies and cost savings of $335 million captured during the second quarter. AB InBev is also well advanced in sharing best practices, with intellectual synergies driving a new approach to category growth.

Western Europe, which is part of AB InBev’s EMEA business, had another strong quarter and double-digit revenue growth, driven by strong performance of the premium portfolio, especially the global brands. The UK performed particularly well with double-digit top-line growth resulting from a strong commercial performance. In Eastern Europe, revenues declined by low single digits as volumes fell by high single digits. AB InBev continues to face a difficult macroeconomic environment in both Russia and Ukraine as well as a large PET ban in Russia, although it did see good growth from its premium portfolio in these markets.

AB InBev expects to accelerate total revenue growth during 2017, driven by the solid growth of its global brands and strong commercial plans, including revenue management initiatives. CoS per hl is projected to increase by low single digits on a constant geographic basis, despite unfavourable foreign exchange transactional impacts, and growth in premium brands. Net capital expenditure is expected to reach approximately $3.7 billion during the 2017 financial year.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • May 21, 2018London Int'l Wine Fair
  • May 22, 2018European Coffee Expo
  • June 1, 2018Gluten Free Expo Slovakia
  • June 3, 2018Vinoble
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements