US brewing giant sees profits rise

ANHEUSER-BUSCH InBev, the world’s biggest brewer by sales, reported a strong start to the year with help from a lower tax rate and financing costs.

The brewer, whose majority owned subsidiary Ambev this month unveiled plans to take control of Cervecería Nacional Dominicana through a strategic alliance, said overall volume rose 1.8 per cent year on year in the first quarter, with own beer growing by 1.4 per cent and non-beer by 6.3 per cent.

Revenues rose 6.2 per cent on an organic basis to $9.3 billion. Normalised earnings before interest, tax, depreciation and amortisation increased 4.2 per cent to $3.5 billion.

ABI is forecasting continued momentum in the US business next year. The US is benefiting from the launch of Bud Light Platinum, which gained market share of 1.4 per cent within four weeks, according to independent data.

ABI paid a lower effective rate of tax, at 17.3 per cent against 23.9 per cent in the same period last year. This was attributed to shifting profit mixes to countries with lower marginal tax rates. – (Copyright The Financial Times Limited 2012)