AB Inbev grows revenue despite falling volumes

01 August, 2013

AB Inbev has announced that the first half of 2013 has seen its revenue grow 2.7%, despite volumes falling by 2.6% (compared with H1 2012).

North America, where nearly a third of the beer group’s volume is consumed, declined by 3.4% but made marginal gains in revenue (0.2%).

It was a trend echoed in many of AB Inbev’s major sales regions as revenue per hl grew 5.6% compared with H1 of last year.

Latin America (north) saw -3.7% in volume but  +4.6% in revenues while the disparity was further exaggerated in Latin America (south) which saw -6.4% in volume but +11.8% in value.

A statement from AB Inbev highlighted it's major South American market, Brazil: “Brazil beer volumes were marginally down 0.4% in 2Q13, a good improvement versus 1Q13. This result was driven by a gradually improving industry performance and focused execution of our revised commercial plan, and despite the public demonstrations taking place in a number of cities during the month of June. The FIFA Confederations Cup soccer tournament held in Brazil in June was also positive for our business."

The picture in Western Europe, home to the Belgium-headquartered group, was of declines of -7.0% in volume and -4.3% in value.

The outlook in Eastern Europe was also one of retreat, down 10.1% in volume, -9% in value.

Asia Pacific grew 9.2% by volume and 19.5% by value.

AB Inbev said of China, it’s largest market in the region: “Revenue per hl grew by 7.4% in Q2 2013, mainly from improved brand mix as consumers continued to trade up into our core plus and premium brands, specifically Harbin, Harbin Ice and Budweiser.”

AB InBev’s net debt increased to $43bn as of 30 June 2013, up from $30bn on 31 December 2012. Debt was impacted by the Grupo Modelo merger.

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