Belgium: AB InBev shows strong performance in its first year with SAB Miller

AB InBev has published on Thursday its full year 2017 results and has shown a strong performance in its first year since buying closest rival SABMiller.

  • Revenue grew by 5.1% in 2017, with revenue per hl growth of 5.1%
  • Combined revenues of the three global brands, Budweiser, Stella Artois and Corona, grew by 9.8% in 2017
  • EBITDA increased by 13.4% in 2017 to 22 084 million USD, as a result of strong top-line growth and enhanced by synergy capture
  • Normalized profit attributable to equity holders of AB InBev increased by 64.2% on a reported basis from 4 853 million USD in 2016 to 7 967 million USD in 2017
  • Total volume sales rose on an organic basis by 0.2 percent to 612.57 million hectoliters.

 “2017 was a landmark year for our company. Not only did we deliver our best results from the last three years but we are well on the way to achieving our most successful business integration ever, following the combination with SAB,” said AB InBev’s Chief Executive Carlos Brito.

The press release from Thursday further explains: “The combination with SAB has exceeded our expectations. Cost synergies are not only greater than originally expected, but they are also being delivered at a faster pace. Revenue synergies, although not externally quantified, are well underway through the successful launch of our global brands into new territories, among other activities.

We have also adopted a new way of looking at the beer category that recognizes different market maturities and the role of brand portfolios in driving category growth. As we look forward, we are excited about the growth opportunities in our expanded footprint for both developed and developing markets.”

Asked about the outlook for 2018, Chief Financial Officer Felipe Dutra said he expected the momentum from 2017 to be maintained. “We expect to continue to deliver results that are consistent with that or as strong as that,” he said. Revenue and core profit (EBITDA) are expected to grow strongly again in 2018, with revenue per hectoliter rising by more than inflation and costs by less.

 

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