The AB InBev stock crashed this morning after the world’s largest brewer reported weak results and cut sales forecasts. Especially Brazil, AB InBev’s second-largest market declined for a fourth straight quarter. Volumes in Brazil fell by 4.1 % in the last quarter, which ended in September. Reasons were tougher market conditions compared to favorable results one year earlier and a shift of price rises to the fourth quarter.
In addition sales in the U.S., AB InBev’s largest market, were flat. The current development reveals a weakness in AB InBev’s former setup with a focus on business mainly in saturated markets. Experts see this as the main reason for the take-over its closest rival SABMiller. The transaction, which was completed earlier this month, left AB InBev with SABMiller’s brewing interests in growing markets like Africa and Latin America while SAB Miller’s business in saturated markets like Europe and North America were handed over to other investors. Current results still do not include the figures of SABMiller.
The negative news caused the AB InBev share to crash by more than 4%, which decreased market value of the brewing giant by 8.7 billion euros ($9.5 billion). Still, AB InBev remains Europe’s largest company by market capitalization with 217 billion euros ($237 billion), a title which it took this month from the world's leading nutrition, health and wellness company, Nestlé SA, valued at the equivalent of 209 billion euros ($228 billion).