ABI Posts Revenue, Earnings Growth, Despite Declining Volumes

Even as its global and North American beer volumes declined by 2%-3%, Anheuser-Busch InBev (ABI) posted revenue and profit growth in 2013, thanks to a positive price mix. ABI’s total revenue grew by 3.3% last year, to $43.2 billion, while its EBITDA rose by 8.1% to $17.2 billion. The beer giant’s earnings per share grew by 9.1% to $4.91, propelled by a 32.7% jump in the fourth quarter. ABI’s flagship Budweiser brand enjoyed a 6.4% sales increase in 2013, due to strong performances in China, Brazil, Russia and the U.K. Meanwhile, sales of Corona—which the brewer added via its $20 billion acquisition of Mexico’s Grupo Modelo (the deal closed in June 2013)—increased by 3.9%.

In North America—ABI’s biggest market, accounting for more than 27% of volume and nearly 40% of EBITDA—volume declined by 2.6% in 2013. However, EBITDA inched up by 0.4%, as higher-end offerings like Budweiser Black Crown and craft entry Goose Island achieved solid results. These brands contributed to a positive price mix, as did Bud Light Lime-A-Rita and Bud Light Lime Straw-Ber-Rita, which was launched in 2013. A 12-pack (of 8-ounce bottles) of these premix products generally retails for around $1-$2 more than a 12-pack (of 12-ounce bottles) of Bud Light.

Tagged : ABI, Anheuser-Busch, beer

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