AB InBev, a beer producer, has shared a gloomy forecast with investors. The company’s experts predict that already in the first quarter of this year, there will be the biggest drop in profits over the last 10 years. The consequences of the notorious epidemic of coronavirus are considered to be the reason for the fall.
According to the company, the profit prior to the deduction of expenses will be reduced by 10%. Net income for the period from October to December 2019 was equal to 114 million US dollars. In 2018, this figure was $ 456 million. According to the experts polled by FactSet, the figure should have come close to $ 2.8 billion.
The revenue has fallen to 13.3 billion US dollars. For the same period last year, it amounted to 13.8 billion US dollars. According to analysts, the figure was to amount to 13.7 billion US dollars. The profit prior to the deduction of expenses has amounted to $ 5.3 billion. In the previous year, it was equal to 6 billion US dollars. Experts predicted a figure of $ 5.7 billion.
In 2018, the volume of products sold amounted to 140 million hectoliters. In 2019, it increased to 142 million hectoliters. In relative terms, the volume has increased 1.6%.
In North America, sales have fallen 2.5%, in Asia – 5%. In Europe, the Middle East and Africa, sales have increased 3.5%. In South America, sales have climbed 3.4%.
AB InBev believes that coronavirus has cut revenue for the first two months of this year by about $ 285 million. Profit in China will decline by $ 170 million. The company shares on the stock exchange in Brussels have fallen 5%. Starting this year, the company’s market value has fallen almost 20% and currently totals 121.3 billion euros.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group