FDBusiness.com

AB InBev Continues to Focus on Premiumisation

 Breaking News

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.


Warning: count(): Parameter must be an array or an object that implements Countable in /home/fdbusiness/public_html/wp-content/themes/legatus-theme/includes/single/post-tags.php on line 5
Share

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

[eventlist]

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements