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Drinks

AB InBev Targets Medium Term Core Profit Growth Of 4% To 8%

Anheuser-Busch InBev's new leadership has set a core profit growth target for the world's largest brewer of 4% to 8% over the medium term.

The maker of beers Budweiser, Stella Artois and Corona, headed since 1 July by Michel Doukeris, will host an investor seminar on Monday.

In the 10-year period 2010-2019, AB InBev's earnings before interest, tax, depreciation and amortisation (EBITDA) increased by an average 7.3%, then fell 2.4% in pandemic-hit 2020.

The Belgium-based company is forecasting 10-12% expansion this year.

Its target for 'organic' EBITDA growth removes the impact of currency changes on translation of foreign operations and of acquisitions and divestments.

New Management

Doukeris, AB InBev's former head of sales and of its North America business, replaced fellow Brazilian Carlos Brito who built the brewer into the world's largest during 15 years at the helm.

Brito steered growth through acquisitions and cost savings. His successor is likely to focus more on boosting sales of over 500 brands in an already concentrated beer market.

In October of this year, the brewer, upgraded its forecast for 2021 earnings growth after posting a surprise increase in third-quarter profit, buoyed by beer sales in Brazil.

Its revenue grew 15.3% in Brazil as consumers drank more and purchased higher-priced beers.

During the quarter, the company achieved carbon neutrality for its second brewery and first malthouse in Brazil. Earlier this year, its brewery in Wuhan, China, was the first facility within the group to achieve carbon neutrality.

News by Reuters, edited by ESM. For more A-Brands stories, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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