AB InBev’s South African Q1 sales dip on March sin tax increases
JSE-listed Anheuser-Busch InBev (AB InBev) saw revenue growth in South Africa of mid-single-digits for the quarter ended March 31, driven by high, single-digit revenue per hectolitre growth.
The company said demand was reduced during the Easter peak season owing to higher sin taxes that came into effect in March.
The company said the business integration with South African Breweries was progressing well, with synergies and cost savings of $160-million captured during the quarter.
"Castle Lite continues its strong growth in the core plus segment and this quarter achieved the highest ever online engagement through its partnership with rap artist Chance the Rapper," the company said in its results statement.
It added that Castle Free continued to expand the beer category into the nonalcoholic space and recently announced a multiyear sponsorship of the National Rugby 7s team.
In the near-beer segment, the successful launch of a new variant contributed to over 30% growth for the Flying Fish brand.
The company, meanwhile, noted that group earnings before interest, taxes, depreciation and amortisation grew by 6.6% with margin expansion of 70 basis points to 38.2%.
Earnings a share decreased to $0.73 from $0.74 during the same period last year, while revenue for the quarter grew by 4.7% to $13-billion.
“Our global brands continued to deliver solid results, with revenue growth of 7.9% globally and 12.2% outside of their respective home markets. These brands typically command a premium and contribute higher margins when sold outside of their home markets.”
Budweiser revenues declined by 1.3% owing primarily to a soft performance in the US.
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