AB InBev impacted by alcohol bans

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AB InBev impacted by alcohol bans

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Published Date: 2021-02-26 | Source: Stephen Gunnion | Author: Stephen Gunnion

AB InBev impacted by alcohol bans

The global brewing giant expects a better 2021as consumers adapt to ongoing Covid-19 restrictions.

Anheuser-Busch InBev has reported a decline in full-year sales and revenue after the Covid-19 pandemic disrupted trading around the globe. However, it expects an improved 2021 as the pandemic recedes and consumers adapt to ongoing restrictions.

Apart from three alcohol bans in SA, the most recent of which ended on 1 February, the world's biggest brewer said it was also impacted by government-mandated shutdowns in other geographies, such as Mexico. That resulted in a 5.7% decline in global volumes for the year to end-December, with sales of its global brands, Budweiser, Stella Artois and Corona, decreasing by 5%. South America was the only region where volumes improved, supported by beer-drinking Brazilians. While volumes were just 1.4% lower in North America, the brewer recorded double-digit declines in the Middle Americas, the Asia Pacific, and Europe, the Middle East and Africa (EMEA).

For the group as a whole, revenue declined by 3.7% over the year and earnings before interest, tax, depreciation and amortisation (EBITDA) fell 12.9% to $17.3 billion. Net finance costs for the year amounted to $5.96 billion, up from $4.26 billion, as a result of a $1.21 billion mark-to-market loss linked to the hedging of its share-based payment programmes.

Net profit for the year more than halved to $3.81 billion but underlying net profit, which excludes the mark-to-market gains and losses and the impact of hyperinflation, was 30% lower at $5.02 billion. On the same basis, underlying earnings per share came in 31% down at $2.51. Headline earnings per share sank 86% to 66 US cents. It declared a full-year dividend of 50 euro cents per share.

AB InBev's shares closed 3.5% down at R907.10 yesterday.





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