AB InBev Sees 5% Revenue Growth, Boosted By Global Beer Brands
Brewing company Anheuser-Busch InBev has reported that revenue increased by 5.1% in full-year 2017, boosted by 8.2% growth in its fourth quarter.
Combined revenues of the company's three global beer brands – Budweiser, Stella Artois and Corona – grew by 9.8% year on year, with a 17.8% increase in the most recent quarter.
Total volumes saw an increase of 0.2%, with beer volumes up 0.6% and non-beer volumes down 3.1%.
In a statement made yesterday, AB In Bev said that 2017 was a 'transformative year' for the company, and that the group delivered its 'best performance in three years'.
The company added that its reshaped brand portfolio is on track to capture future growth.
AB InBev says that EBITDA increased by 13.4% to $22.08 billion in 2017, as a result of strong top-line growth.
There were increases seen in both new and established markets, driven by global sales of Budweiser (+4.1%), Stella Artois (+12.8%), and Corona (+19.9%). The company also grew profitability in its two largest markets – the US and Brazil.
Additionally, AB InBev's business integration with SAB, following the 2016 merger, resulted in synergies and cost savings of $1.3 billion last year.
The company says that this deal has exceeded expectations, delivering cost synergies at a faster pace than originally anticipated.
Elsewhere, AB InBev also announced this week that it has agreed on an extended partnership with C&C Group that will see Orchard Pig craft cider added to the portfolio of C&C brands distributed, sold and marketed by AB InBev in England, Wales, Isle of Man and Channel Islands.
The two drinks companies first entered into partnership in December 2016.
“We are committed to offering customers a diverse and balanced portfolio of premium beers and ciders and are pleased that this latest extension of our C&C Group partnership will give customers even more choice within the cider category," said Michael Poynton, UK project lead and AB InBev.
"Orchard Pig is a fantastic brand with great potential and we look forward to continuing its momentum through our distribution network.”
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.