AB InBev Withdraws 2020 Earnings Guidance
March 23 2020 - 9:33PM
Dow Jones News
By P.R. Venkat
Anheuser-Busch InBev SA is withdrawing its guidance for 2020,
joining the list of many global companies that have done the same,
as the extent of the impact caused by the Covid-19 pandemic on
businesses and economies remain uncertain.
The pandemic represents unprecedented challenges for societies,
governments and businesses across the world, AB InBev Chief
Executive Carlos Brito said in a statement late Monday.
Multinational companies around the world, including Ford Motor
Co., Marriott International Inc. and Airbus, have also said they
are withdrawing their outlook and guidance for 2020 due to the
economic uncertainty caused by the pandemic.
Some companies have also been drawing on credit lines and
suspending dividend payments, signaling the deep impact the virus
is likely to create on companies' financials.
The spread of the virus, which has so far claimed over 14,500
lives and has infected more than 300,000 people, has led to
governments around the world imposing tighter border controls and
restrictions on travel, and recommending social distancing.
Last week, AB InBev said it was drawing down $9 billion in loan
facilities, in addition to more than $7 billion in cash and cash
equivalents on the company's balance sheet at the end of 2019.
AB InBev--the world's largest brewer, with brands such as
Budweiser, Bud Light and Michelob Ultra--had said in February that
it expects growth in earnings before interest, taxes, depreciation
and amortization of 2% to 5%, with most of that delivered in the
second half.
The company had said then that it lost $170 million in profits
during the first two months of 2020.
"We are living in extraordinary times," Mr. Brito said.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
March 23, 2020 22:18 ET (02:18 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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