The report states that the profits have been boosted by cost management and an increase in sales of premium brands
Despite a slowdown in the Chinese beer market caused a dip in volumes, beer giant Anheuser-Busch InBev has managed to report a jump in its profits in the fourth quarter, according to a report by Reuters. The profits have been boosted by cost management and an increase in sales of premium brands.
The company managed to beat the analyst forecasts as quarterly profits were up 10.1 per cent as compared to the forecast of 7.7 per cent. This surge was on the back of pricier labels like Corona and Michelob Ultra, which led to growth in revenues, as per the reports.
While the company gained market share in the United States (US) market, it registered healthy growth in Central and South America, North America and Europe. The reports added that weak demand in China and Argentina caused a decline in volumes but the analysts label this as a solid end to the year for the brewer.
However, the reports added that a 19 per cent dip in volumes in China could cause worry among some investors as around one-fifth of sales for the brewer takes place in the region. As far as the competitors are concerned, Heineken reported bumper earnings as well. The reports added that the shares of Heineken saw its biggest one-day gain since 1989 earlier this month, led by healthy growth in its annual profits, revenues and volumes.
