AB InBev Reports Revenues Up in Q2 Despite Sales Dip

Volumes in the quarter were soft, primarily driven by the US as a result of the anticipated adjustment to our shipping patterns in order to ensure a smoother and more cost efficient phasing of shipments to wholesalers (STWs) leading to a 2.1% decline in 2Q12.

1 Aug 2012 --- Anheuser-Busch InBev has reported that in the second quarter, total revenue for the company grew by 4.7% in the quarter, driven by solid revenue per hectoliter growth of 6.4% on a constant geographic basis, supported by mix improvements and revenue management initiatives.

Volumes in the quarter were soft, primarily driven by the US as a result of the anticipated adjustment to our shipping patterns in order to ensure a smoother and more cost efficient phasing of shipments to wholesalers (STWs) leading to a 2.1% decline in 2Q12. “However, US sales-toretailers (STRs), which we believe is a much better indicator of the health of the business, continued to make good progress, closing the half year 0.2% ahead. On a full year basis, we expect STWs and STRs to be more closely aligned, as in previous years,” the company reported.

Sales and marketing investments increased by 7.5% in the quarter and by 9.1% in HY12, as the company continue to invest behind our brands.

In 2Q12, EBITDA increased by 2.5% and EBITDA margin declined by 80 bps to 36.4%. EBITDA performance in the quarter was impacted by (i) the anticipated decrease in shipments to wholesalers in the US, (ii) an increase in distribution expenses in the US related to the roll-out of innovations, as well as higher overall transportation costs in both Brazil and the US and (iii) difficult comparables in administrative expenses related to variable compensation accruals in Brazil and Global Export and Holding Companies (GEHC).

Focus Brand volumes grew 1.0% in 2Q12, led by Budweiser globally, Harbin and Sedrin in China, Antarctica and Brahma in Brazil, and the Bud Light Family in the United States. In HY12, Focus Brand volumes grew 2.2%.