Brewing giant Anheuser-Busch InBev (AB InBev) has posted revenue growth of 4.7% in the first quarter of its financial year.
Global revenue growth was driven by good volume performances in Mexico, Colombia and Argentina, partly offset by the US and Brazil, the company said.
Organic EBITDA grew by 6.6%, with margin expansion of 70 basis points, to 38.2%.
Global Brands
AB InBev said that its three major global brands delivered revenue growth of 7.9% and 12.2% outside of their respective home markets.
Budweiser revenues declined by 1.3% this quarter, due to a soft performance in the United States, but grew by 2.5% outside of the US, driven by strong growth in Brazil, Paraguay, India and South Korea.
Stella Artois revenues grew by 12.3%, with good performances in Argentina and the UK. Corona had another great quarter, with revenues growing 25.1% overall and 40.3% outside of Mexico, led by China and Western Europe.
Sustainability
In the first quarter, the group reported that it remains firmly committed to its 2025 sustainability goals. In smart agriculture, InBev aims that 100% of its farmers will be skilled, connected, and financially empowered, and that 100% of its communities in high-stress areas will have measurably improved water availability and quality.
AB InBev also aims for 100% of its products to be in packaging that is returnable or made from majority recycled content, that 100% of its purchased electricity will be from renewable sources, and that it will see a 25% reduction in CO2 emissions across its value chain, all by the middle of the next decade.
Looking ahead to the full year, the company said that while quarter one was slightly better than anticipated, the group still expects growth to accelerate for the remainder of the year, especially in the second half.
AB InBev also recently completed the merger of its businesses in Russia and Ukraine with Turkish brewer Anadolu Efes. The merger follows AB InBev's acquisition of a 24% stake in Anadolu Efes as part of the company's tie-up with SABMiller, which was completed in October 2016.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O'Sullivan. Click subscribe to sign up to ESM: European Supermarket Magazine.
