Anheuser-Busch InBev reports third quarter 2010 results

Shaun Weston4 Nov 2010

Anheuser-Busch InBev reports a 4.1% increase in total Q3 2010 volume sales, with soft drink volumes up 5.9%.

Highlights

  • Volume performance – Total 3Q10 volumes grew 4.1%, with own beer volumes up 4.1% and soft drink volumes up 5.9%. In 9M10, total volumes increased 2.4%, with own beer volumes up 2.3% and soft drink volumes up 4.6%.
  • Focus Brands – Focus Brand volumes grew 6.5% in 3Q10 and 4.9% in 9M10, led by Budweiser internationally; Antarctica, Brahma and Skol in Brazil; Harbin and Sedrin in China; and Klinskoye in Russia.
  • Market share gains – In 9M10, we gained or maintained market share in markets representing more than half of our total beer volumes.
  • Revenue growth – 3Q10 revenue rose 5.4%, or 1.5% per hl, and 9M10 revenue grew 3.9%, or 1.4% per hl. On a constant geographic basis, ie eliminating the impact of faster growth in countries with lower revenue per hl, revenue growth per hl improved 3.5% in 3Q10 and 2.9% in 9M10.
  • Cost of Sales – Cost of Sales (CoS) increased 2.9% in 3Q10, and decreased 1.7% per hl. In 9M10, CoS increased 1.6%, and decreased 1.5% per hl. On a constant geographic basis, CoS per hl increased 0.8% in 3Q10 and 0.7% in 9M10.
  • Sales and marketing – Sales and marketing investments rose 5.3% in 3Q10 and 6.8% in 9M10, with increases across most major markets reflecting continued support behind our Focus Brands and innovations.
  • Synergies – 3Q10 synergies of $140m related to the combination with Anheuser-Busch, bringing 9M10 synergies to $450m and total synergies achieved to $1,810m.
  • Ebitda – 3Q10 Ebitda grew 9.1% to $3,533m, with Ebitda margin of 37.9% compared to 36.0% in 3Q09 with organic improvement of 125 bps. 9M10 Ebitda rose 6.7% to $9,974m with a margin of 37.2%, an organic improvement of 96 bps.
  • Non-recurring items above EBIT – 3Q10 normalised profit from operations excludes non-recurring items of $-9m or $-0.01 per share.
  • Net finance costs – Net finance costs of $594m in 3Q10 compare to $971m in 3Q09. The decrease is primarily due to lower net interest charges as a result of reduced net debt levels and lower accretion expenses as bank borrowings are being reduced as a percentage of total debt. In addition, 3Q10 net finance costs also include an unrealised gain of $105m from derivative contracts and favourable currency translation, both included in other financial results. Net finance costs of $2,013m in 9M10 compare to $2,964m in 9M09.
  • Non-recurring finance costs – Normalised profit excludes a one-time negative mark-to-market adjustment of $49m or $-0.03 per share following the prepayment of approximately $1bn of bank financing.
  • Profit – Normalised profit attributable to equity holders of Anheuser-Busch InBev of $1,489m in 3Q10 compares to $1,132m in 3Q09 on a reported basis, and $3,820m in 9M10 compares to $3,050m in 9M09 on a reported basis.
  • EPS – Normalised earnings per share of $0.94 in 3Q10 compares to $0.72 in 3Q09 on a reported basis, and $2.40 in 9M10 compares to $1.93 in 9M09 on a reported basis.

Source: Anheuser-Busch InBev