AB InBev reports second-quarter and half-year 2010 results

Shaun Weston12 Aug 2010

Anheuser-Busch InBev has published its second-quarter and half-year 2010 results, showing a rise in profits.


  • Volume performance – Total 2Q10 volumes increased 2.1%, with own beer volumes up 2.0% and soft drink volumes up 5.5%. In HY10, total volumes increased 1.5%, with own beer volumes up 1.4% and soft drink volumes up 3.9%.
  • Focus Brands – Our Focus Brand volumes grew 5.7% in 2Q10 and 4.0% in HY10, led by Budweiser internationally, Antarctica, Brahma and Skol in Brazil and Harbin in China.
  • Market share gains – In HY10, we gained or maintained market share in markets representing almost half of our total beer volumes.
  • Revenue growth – 2Q10 revenue rose 4.1%, or 1.5% per hectolitre, and HY10 revenue grew 3.1%, or 1.3% per hectolitre. On a constant geographic basis, growth in revenue per hl would have been 2.8% for 2Q10 and 2.7% for HY10.
  • Cost of sales – Cost of sales (CoS) increased 2.9% in 2Q10, and decreased 0.3% per hl. In HY10, CoS increased 0.9%, and decreased 1.3% per hl. On a constant geographic basis, CoS per hl would have increased 1.1% in 2Q10 and 0.8% in HY10.
  • Sales and marketing – Sales and marketing investments grew 10.0% in 2Q10 and 7.6% in HY10, with increased support to Focus Brands and global sponsoring activities before and during the Fifa World Cup partly offset by reductions in non-working money in North America.
  • Synergies – 2Q10 synergies of $180m related to the combination with Anheuser-Busch, bringing HY10 synergies to $310m and total synergies achieved to $1,670m.
  • Ebitda – 2Q10 Ebitda grew 5.6% to $3,354m, with Ebitda margin of 36.6% compared to 38.2% in 2Q09 with organic improvement of 50 bp. HY10 Ebitda rose 5.4% to $6,440m with a margin of 36.8%, an organic improvement of 79 bp.
  • Scope change – Ebitda includes a negative scope of $240m in North America, reflecting a curtailment gain in 2Q09 reported as a positive scope in 2009.
  • Net finance costs – Net finance costs of $519m in 2Q10 compare to $1,152m in 2Q09. The decrease is primarily due to lower net interest charges as a result of reduced debt levels, lower accretion expenses as bank borrowings are being reduced as a percentage of total debt and the impact of a foreign exchange translation gain in other financial results. Net finance costs reached $1,419m in HY10 as compared to $1,993m in HY09.
  • Profit – Normalised profit attributable to equity holders of Anheuser-Busch InBev of $1,440m in 2Q10 compares to $1,134m in 2Q09, and $2,331m in HY10 compares to $1,918m in HY09.
  • EPS – Normalised earnings per share of $0.90 in 2Q10 compare to $0.72 in 2Q09, and $1.46 in HY10 compare to $1.21 in HY09.
  • Cash flow – Cash flow from operating activities reached $4,133m in HY10 as compared to $5,067m in HY09. The slowdown in cash flow from operating activities is primarily due to tough comparisons as the timing of interest and income tax payments in 2009 was heavily concentrated in the second half of that year.
  • Deleveraging – Net debt as of 30 June 2010 was $42.1bn, a decrease of $3.0bn from 31 December 2009, with a net debt to Ebitda ratio of 3.3 vs 3.7 six months ago.

Source: Anheuser-Busch InBev