Anheuser-Busch Previews Strong Third Quarter Results
Driven by the successful national introduction of Bud Light Lime, U.S. beer shipments-to-wholesalers increased 2.3 percent for the third quarter, with sales-to-retailers for the quarter up 3.6 percent.
03/10/08 Anheuser-Busch Cos. Inc. announced that it achieved good U.S. beer volume growth in the third quarter. Driven by the successful national introduction of Bud Light Lime, U.S. beer shipments-to-wholesalers increased 2.3 percent for the third quarter, with sales-to-retailers for the quarter up 3.6 percent.
In addition, the pricing environment in the U.S. beer market continues to be favorable. Management expects revenue per barrel to increase nearly 4 percent in the third quarter, including favorable brand mix. As planned, implementation of the company’s 2009 price increase plan was initiated in the latter half of September. By October 1, Anheuser-Busch had taken pricing actions covering over 85 percent of the company’s U.S. beer volume.
Commodity cost pressures continue but are being mitigated by the company’s Blue Ocean cost savings initiatives. Cost of goods sold per barrel for the U.S. beer company is expected to increase slightly less than revenue per barrel in the third quarter, yielding gross margin expansion in the period.
The company’s international beer operations are also performing well. International beer operations volume is expected to be up mid-single digits in the third quarter with pretax profits up over 20 percent (excludes equity income).
Packaging segment pretax income in the third quarter is expected to be up in the mid-teens, while entertainment profits are expected to be down somewhat.
Consolidated marketing, distribution and administrative expenses in the third quarter are expected to be up mid-single digits.
Consolidated pretax income in the third quarter is expected to be up low double-digits, excluding one time items. The company continues to expect equity income to decline for the full year.
