A-B InBev's profits surge

4Q profit passes $1.2 billion mark

Integration 'complete', says giant

A-B InBev’s fourth quarter volumes dipped by 1% last year while profit stood at $1.28 billion, up from a reported $29 million in the same period last year.

The planet’s biggest brewer said the integration of InBev and Anheuser-Busch, which affected 4Q08’s figures with high set-up costs, was “essentially complete” with $1 billion in synergies having been captured from A-B in 2009

Full year volumes stood at 408.6 million hectolitres, down 0.7% on the combined number for 2008. Profit stood at $4.61 billion, up from $1.93 billion in 2008.

“A-B InBev closed 2009 on a positive note, with 4Q09 EBITDA increasing 11.5%, bringing our total for the year to a 16.6% gain,” the firm said in a statement.

“Our focus brand volumes grew 1.9% in FY09, outpacing a flat global industry performance.”

In North America, the brewer’s largest market, volumes declined by 2%, but efficiency gains and lower raw material prices helped reduce cost of sales, said A-B InBev.

Northern Latin America saw an 8.8% increase in volumes, driven by improving economic conditions and market share growth. The southern part of the region saw a 3.8% slide in volumes, thanks to tough comparable and poor weather.

In Western Europe, where the brewer plans to cut 10% of its workforce, volumes were driven down by 4.9% by what the A-B InBev called a “deteriorating industry and aggressive competitor pricing”.

Central and Eastern European volumes slid 10.8%, with Russia suffering a 13.1% decline. In the fourth quarter the decline was 4.6%, reflecting stock-building inspired by the 200% duty increase imposed in January.

Chinese volumes fell by 2.4%, while the wider Asia Pacific region saw volumes contract 2%. South Korean volumes showed a 3.4% decline prior to A-B InBev’s disposal of Oriental Brewery in July.

The giant’s key brands include Stella, Beck’s and Budweiser, which was named the world’s most valuable beer brand in last month’s Brand Finance Global 500.