AB InBev Lowers 2019 Ebitda Guidance; 3Q Net Profit Leapt
October 25 2019 - 12:58AM
Dow Jones News
By Ian Walker
The world's biggest brewer, Anheuser-Busch InBev SA (ABI.BT), on
Friday lowered its full-year Ebitda guidance, citing a number of
headwinds which it expects to continue into the fourth quarter, but
still reported a near three-fold rise in net profit.
The company--which houses Budweiser, Stella Artois and Corona
among its brands--said it expects earnings before interest, taxes,
depreciation and amortization for the year to show "moderate"
growth, compared with previous guidance of strong growth. It blamed
a number of factors for the lower guidance, including higher costs
of sales from commodities and currency headwinds.
Net profit for the quarter ended Sept. 30 was $3.0 billion
compared with $959 million the year previous. The net profit
consensus forecast was $2.82 billion, taken from FactSet and based
on four analysts' forecasts.
Normalized Ebitda--one of the company's preferred metrics which
strips out exceptionals and other one-off items--slipped to $5.29
billion from $5.31 billion. Normalized Ebitda consensus forecast
was $5.55 billion, taken from FactSet and based on eight analysts'
forecasts.
The company said it expects to deliver strong revenue growth for
the year as a whole. Revenue rose to $13.17 billion from $12.92
billion.
The company said total beer volume fell 0.5% on an organic basis
to 143.4 million hectoliters. In North America total beer volumes
fell 3.4% to 29.0 million hectoliters, it said.
The board has declared an interim dividend of 80 European cents
(88.83 cents) a share.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
October 25, 2019 01:43 ET (05:43 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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