🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

AB InBev, Carlsberg Raise Full-Year Forecasts After Sparkling Summer

Published 27-10-2022, 03:58 pm
© Reuters.

By Geoffrey Smith 

Investing.com -- Shares in two of the world's biggest brewing groups rose on Thursday after they both upgraded their guidance for the year in the wake of strong summer sales.

Anheuser-Busch InBev (EBR:ABI), the group behind Budweiser and Stella Artois, said it now expects earnings before interest, taxes, depreciation, and amortization to rise by between 6% and 8% this year, after a quarter in which it sold 3.7% more beer than a year ago, despite substantial price increases. Its medium-term forecast of annual EBITDA growth between 4% and 8% remained unchanged.

AB InBev stock rose 6.5% in European morning trading to a six-week high in response.

The group said strong performances in Mexico, Brazil, and South Africa helped its overall result, while it also noted that Budweiser sales rose nearly 8% despite disruption from widespread lockdowns during the period in China, its most important market. China was a drag on the group's performance, with revenue growing only 1.7% and EBITDA falling.

At the same time, Carlsberg (CSE:CARLb) stock rose 1.6% after the Danish-based group also raised its profit forecast and expanded its buyback program. It will buy back 1.5 billion kroner ($202 million) of stock in the current quarter, up from 1 billion in the three months through September.

Carlsberg said the summer had brought a "better-than-expected performance in many of our markets." It now expects organic profit growth of between 10% and 12% this year, having earlier forecast growth of just under 10%.

Revenue in the third quarter was up 12% from a year ago, as the group registered growth across all of its regions, led by Asia.

"Our earnings upgrade and the increase in the next quarterly share buy-back are proof points of the resilience of our brands and the strength and agility of our business," said chief executive Cees 't Hart.

The two groups' reports struck a more positive note than that of Heineken (AS:HEIN), which had warned of weakening demand when it reported earlier in the week.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.