Anheuser-Busch InBev's 3Q Net Profit Missed Forecasts -- Earnings Review
October 29 2020 - 7:50AM
Dow Jones News
By Ian Walker
Anheuser-Busch InBev SA has reported a 65% fall in third-quarter
net profit, missing market forecasts. Here's what you need to
know:
SALES: Sales for the third quarter were $12.82 billion, compared
with a forecast of $11.78 billion taken from FactSet and based on
nine analysts' estimates.
NET INCOME: Net income was $1.04 billion, missing a forecast of
$1.62 billion taken from FactSet and based on four analysts'
estimates. This compares with $3.0 billion for the same period last
year.
NORMALIZED EBITDA: Normalized earnings before interest, taxes,
depreciation and amortization--one of the company's preferred
metrics, which strips out exceptional and other one-off items--was
$4.89 billion, compared with a forecast of $4.34 billion taken from
FactSet and based on five analysts' estimates.
WHAT WE WATCHED:
-VOLUMES: AB InBev reported a 1.9% lift in total volumes, with
increases of 1.5% in North America, 15% in South America and 0.5%
in Asia Pacific. Jefferies had expected the brewer to report flat
third-quarter volumes in North America, a 6% increase in South
America and a 2% rise in Asia Pacific.
-CEO SUCCESSION: The company didn't make any comment about its
chief executive. Last month, The Wall Street Journal reported that
AB InBev had begun a search for a successor to longtime CEO Carlos
Brito, citing people familiar with the matter. Mr. Brito is
expected to move to a role on the beer giant's board next year
after more than a decade at its helm.
-DIVIDEND: No dividend has been declared and the company said
any final dividend proposal would be made at the time of its
full-year earnings release on Feb. 25, 2021. AB InBev halved its
final dividend payout in April due to the uncertainty and
volatility caused by Covid-19 and didn't pay one at the half-year
stage.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
October 29, 2020 07:35 ET (11:35 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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