AB InBev targets 4% to 8% medium-term growth

06 December, 2021

The new chief executive of AB InBev has set a core profit growth target of 4% to 8% for the medium-term.

Michel Doukeris, who took over from Carlos Brito at the helm of the world’s largest brewer in July, is set to host an investor seminar today.

In the 10 years from 2010 to the end of 2019, AB InBev’s EBITDA increased by an average of 7.3%, but it decreased by 2.4% during the pandemic in 2020.

The Belgium-based brewer of Stella Artois, Budweiser and Corona is now forecasting 10% to 12% growth for 2021. In the medium-term, it believes growth of 4% to 8% is achievable.

Brito turned AB InBev into the world’s largest brewer through acquisitions – most notably snapping up rival SAB Miller – and cost savings. Analysts believe Doukeris – who previously headed up the firm’s North American business – will focus more heavily on boosting sales of existing brands around the world.

Shares in the brewer edged up this morning ahead of the investor seminar. “This is an important step in AB InBev setting expectations at a consistently achievable level in our opinion,” wrote James Edwardes Jones, an analyst at RBC Europe, in an investor note.

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