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Anheuser-Busch InBev reports First Quarter 2016 Results

ab  Anheuser-Busch InBev reports First Quarter 2016 Results abAnheuser-Busch InBev reports First Quarter 2016 Results

Highlights

Revenue: Revenue grew by 3.1% in the quarter, with revenue per hl growth of 4.9%. On a constant geographic basis, revenue per hl grew by 5.2% driven by strong premium brand volumes

  • Volume: Total volumes declined by 1.7%, with our own beer volumes down by 1.4%. The decline in own beer volumes was driven by Brazil which, as expected, faced challenging macroeconomic conditions and a difficult comparable, partly offset by strong results in Mexico
  • Global Brands: Combined revenues of our three global brands, Corona, Stella Artois and Budweiser, grew by 5.9%. This result was led by Corona with growth of over 22%, driven by Mexico, Chile, China and the UK. Budweiser revenues grew by 0.6%, due to soft volumes in the US and China, partly offset by good results in Brazil and Russia. Stella Artois revenues declined by approximately 2%, due to the timing of shipments in the US
  • Cost of Sales (CoS): CoS increased by 1.8% in 1Q16 and by 3.6% on a per hl basis. On a constant geographic basis, CoS per hl increased by 4.0%
  • EBITDA grew by 2.5% to 3 462 million USD, with top-line growth being partly offset by the timing of investments behind our brands. EBITDA margin declined by 20 bps to 36.8%
  • Net finance results: Net finance cost (excluding non-recurring net finance results) was 1 219 million USD in 1Q16 compared to net finance income of 91 million USD in 1Q15. This variance was driven primarily by an unfavorable mark-to-market adjustment of 138 million USD in 1Q16 linked to the hedging of our share-based payment programs, compared to a gain of 757 million USD in 1Q15. Net interest expense also increased by 273 million USD in the quarter, driven mainly by the net cost of the pre-funding of the proposed combination with SABMiller plc (“SABMiller”)
  • Income taxes: Income tax in 1Q16 was 338 million USD with a normalized effective tax rate (ETR) of 23.2%, compared to an income tax expense of 593 million USD in 1Q15 and a normalized ETR of 18.0%. The increase in the normalized ETR in 1Q16 was driven mainly by the swing in the mark-to-market adjustment linked to the hedging of our share-based payment programs, and country mix
  • Profit: Normalized profit attributable to equity holders of AB InBev was 844 million USD in 1Q16 compared to 2 294 million USD in 1Q15, with organic EBITDA growth more than offset by higher net finance results and unfavorable currency translation
  • Earnings per share: Normalized earnings per share (EPS) decreased to 0.51 USD in 1Q16 from 1.40 USD in 1Q15. However, the underlying 1Q16 result was flat with the same period last year, excluding the mark-to-market adjustment linked to the hedging of our share based payment programs and the net cost of the pre-funding of the proposed combination with SABMiller, as well as the impact of unfavorable currency translation
  • Proposed combination with SABMiller: We are making good progress towards obtaining the necessary regulatory clearances for the proposed combination with SABMiller, and continue to expect the transaction to close in the second half of 2016

First Quarter 2016 Financial Report is available on our website at www.ab-inbev.com

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