AB InBev reports drop in earnings
AB InBev has reported a drop in third-quarter profit. According to the Belgian brewer, adjusted earnings before interest, taxes, depreciation and amortisation fell 2%. The shares fell by close on 6% in Brussels. The company has also cut its revenue forecast due to Brazil, its second-largest market, having a difficult year. It previously cut its forecast for Brazilian revenue in July, predicting unchanged sales. Furthermore, it said sales growth is unlikely to beat inflation this year because of declining volumes in the South American country. In numbers, its Ebitda in Brazil declined by 33%. Moreover, the company announced a decrease in SABMiller's beer volume as a result of weakness in Africa. SABMiller’s lager volume dropped 2% in the three months through September. A transport strike in Colombia, which became Europe’s largest company by market value after the acquisition, contributed to this decrease. Interestingly, the SABMiller results were not consolidated in AB InBev’s figures, and excluded joint ventures as well as assets that were sold or which are up for sale.