Developing Markets Aid InBev Success

09/11/06 InBev, the world’s leading brewer by volume, has said that organic volume growth was driven by developing markets In the third quarter. InBev reported that organic beer sales volume grew +4.6% in 3Q06 versus the third quarter of 2005 (3Q05), primarily as a function of strong beer growth in Central & Eastern Europe (+14.8%) and Latin America (+4.8%), providing further evidence of the company’s attractive growth profile. Beer volume growth in North America (-2.4%) and Western Europe (-2.5%) remained under pressure, confirming the need to continue reducing costs to be able to invest in future growth.

Revenue increased organically by +7.1% year-on-year, as a combination of higher volumes and effective revenue management initiatives; the latter drove an organic +1.6% increase in revenue per Hl yoy.

InBev said that total consolidated volume increased +5.4% in 3Q06 versus 3Q05 (beer +4.6%; non-beer +11.7%). Despite a weak performance in developed markets (North America and Western Europe), InBev’s volumes were positively impacted by its attractive geographic presence. Importantly, the trading conditions in more developed markets reinforce the company’s view and focus on continuously reducing costs and non-working expenses to invest in growth through brands, execution and innovation, InBev said.