Anheuser-Busch InBev reports Third Quarter 2013 Results Back to news

31st October 2013

The enclosed information constitutes regulated information as defined in the Belgian Royal Decree of 14 November 2007 regarding the duties of issuers of financial instruments which have been admitted for trading on a regulated market.

Except where otherwise stated, the comments below are based on organic growth figures and refer to 3Q13 and 9M13 versus the same period of last year. For important disclaimers please refer to page 2 and 3 of the full PDF results document


Revenue growth: Revenue grew by 3.0% in 3Q13 and by 2.8% in 9M13, with revenue per hl growth of 4.2% in 3Q13 and 5.1% in 9M13. On a constant geographic basis (i.e. eliminating the impact of faster growth in countries with lower revenue per hl) revenue per hl grew by 4.9% in 3Q13 and by 5.7% in 9M13

Volume performance: Total volumes in 3Q13 declined by 1.3%, with own beer volumes decreasing by 1.4%, while non-beer volumes declined by 0.8%. In 9M13, total volumes declined by 2.1%, with own beer volumes down 2.0% and non-beer volumes down 3.2%

Focus Brands: Our Focus Brands volumes grew 0.3% in 3Q13, with our global brands up 5.0%, led by global Budweiser, which grew by 8.1%. Global volumes (excluding the US) of our new flagship brand Corona grew by 3.7% in the quarter

Cost of Sales: Cost of Sales (CoS) decreased by 1.2% in 3Q13, and by 0.3% on a per hl basis, benefiting from synergies captured in Mexico. In 9M13, CoS grew by 1.3%, and by 3.6% on a per hl basis. On a constant geographic basis, CoS per hl increased by 1.2% in 3Q13 and by 5.0% in 9M13

Cost Synergies: Approximately 250 million USD of cost synergies have been captured in the four months since the closing of the combination with Grupo Modelo on 4 June 2013. In addition, the Grupo Modelo management team delivered approximately 75 million USD prior to the closing. We remain on track to achieve our commitment of 1 billion USD of cost synergies by the end of 2016

EBITDA: EBITDA grew by 10.5% in 3Q13 to 4 664 million USD, with a margin expansion of 274 bps to 39.8%. This performance was driven by solid revenue per hectoliter growth, good cost discipline and the capture of cost synergies linked to the Grupo Modelo combination. In 9M13, EBITDA grew by 6.1% to 11 989 million USD with a margin of 38.1%, an improvement of 117 bps

Net finance costs: Net finance costs (excl. non-recurring net finance costs) were 562 million USD in the quarter, compared to 680 million USD in 3Q12  Non-recurring net finance income was 170 million USD in 3Q13, due mainly to mark-to-market gains on the hedging of 99% of our equity exposure related to the shares to be delivered in the next five years to some Grupo Modelo shareholders as part of a transaction related to the combination with Grupo Modelo

Income taxes: Income tax expense in 3Q13 was 699 million USD, with a normalized effective tax rate (ETR) of 21.3%, compared to an income tax expense of 456 million USD in 3Q12 and a normalized ETR of 17.2%. The increase in the normalized ETR in 3Q13 mainly results from a change in country mix. The normalized ETR in 9M13 was 18.1% compared to 15.6% in 9M12

Profit: Normalized profit attributable to equity holders of AB InBev increased in nominal terms to 2 205 million USD in 3Q13 from 1 843 million USD in 3Q12. Normalized profit attributable to equity holders of AB InBev increased in nominal terms to 5 562 million USD in 9M13 from 5 429 million USD in 9M12

Earnings per share (EPS): Normalized EPS grew 17.2% in nominal terms to 1.36 USD in 3Q13 from 1.16 USD in 3Q12, driven by growth of the underlying business and the combination with Grupo Modelo, including the cost synergies, despite the significant FX translation headwinds. Normalized EPS was 3.45 USD in 9M13 compared with 3.40 USD in 9M12

Interim Dividend: The AB InBev Board has approved an interim dividend of 0.60 EUR per share for the fiscal year 2013. The shares will trade ex-coupon as of 13 November 2013 and dividends will be payable as from 18 November 2013. The record date will be 15 November 2013


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