AB InBev profit jumps, but sees cost headwinds from tight U.S. supply chains

1 month ago 36
By Adria Calatayud

Anheuser-Busch InBev SA said Thursday that net profit for the second quarter rose sharply as sales exceeded pre-pandemic levels, but the Budweiser brewer said it continues to absorb cost headwinds from tight supply chains in the U.S.

The world's largest brewer, which also houses the Stella Artois and Michelob Ultra brands in its portfolio, said quarterly net profit was $1.86 billion compared with $351 million for the year-earlier period, when its performance was hurt by an impairment charge against its African business.

Belgium-based AB InBev said revenue for the quarter increased to $13.54 billion from $10.29 billion a year before. Organic revenue growth for the quarter was 28%, while organic volumes rose 21%. This compared with expectations for increases of 24% and 19%, respectively, according to a company-provided consensus.

Normalized earnings before interest, taxes, depreciation and amortization for the quarter increased 31% on an organic basis, missing company-provided expectations for a 35% rise.

The company reiterated its guidance for normalized Ebitda growth of between 8% and 12% for 2021 as a whole, with revenue growth ahead of that range.

Write to Adria Calatayud at adria.calatayud@dowjones.com

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