Delta’s parent AB InBev’s year to date revenue declines despite Q3 recovery

Author Name
Respect Gwenzi
Stock Market 10 months ago

Harare – The world’s largest brewer, AB InBev’s revenue for the nine months period ended 30 September declined by 6.8% despite having recorded recoveries in the third quarter ending the same period.

AB InBev is the major shareholder to Zimbabwe’s largest brewer, Delta Corporation Limited with a 41% stake.

Revenue for Q3 2020 grew by 4% attributed to a healthy volume performance.

In a performance report for the third quarter and nine months 2020, the Group said, “Total volumes grew by 1.9% in 3Q20, with own beer volumes up by 2.6% and non-beer volumes down by 2.5%.

“In 9M20, total volumes declined by 8.2%, with own beer volumes down by 8.3% and non-beer volumes down by 5.9%”.

The Group has in the previous quarterly reports flagged subdued revenue and volumes performance stemming from the negative impact of the ongoing global coronavirus (COVID-19) pandemic which has greatly disrupted business operations and supply chains.

Combined revenues for the Group’s global brands, Budweiser, Stella Artois and Corona, increased by 6.8% globally and by 8.1% outside of their respective home markets in 3Q20.

However, in 9M20, the combined revenues for the global brands declined by 7.2% globally and by 7.5% outside of their respective home markets.

Meanwhile, cost of sales (CoS) increased by 9.6% in 3Q20 and by 8.3% on a per hl basis, driven primarily by supply chain adjustments implemented to meet evolving demand. In 9M20, CoS increased by 1.4% and increased by 10.8% on a per hl basis.

In 9M20, EBITDA declined by 16.7% to 12 254 million USD and EBITDA margin contracted by 432 bps to 35.9%.

Normalized profit attributable to equity holders of AB InBev was 1 578 million USD in 3Q20 compared to USD2,412 million in 3Q19 and was USD1,654 million in 9M20 versus USD7,125 million in 9M19.

The Group decided to shelve dividend payment due to the uncertainty and volatility arising from the COVID-19 pandemic.

“This decision is consistent with our financial discipline and prioritizes our deleveraging commitments, which have been impacted by the COVID-19 pandemic,” the Group said.

Markets ● 3 days ago
Fair Value Adjustments Wipe-Out First Mutual HY-21 Profits

Half-year results for the property and insurance Group largely reflected improvements from prior year performance. GWP ↑ 71%Rental Income ↑ 53%Profit ↓ 121% The Group’s Gross Premium Written grew to ZWL 5.4 billion in the period, a 71% inflation-adjusted increase. Despite marginal investment property gains recorded in US$ terms, a ZWL 1.6 billion fair value loss was incurred after conversion of...

Markets ● 1 week ago
Mixed Fortunes In NMB's HY-21 & What Lies Ahead

ZSE-listed financial services firm NMB Bank performed well in the six-months ended 30 June 2021, as net-income grew 105% to settle at ZWL 716.2m from ZWL 348.8 million recorded in the previous comparative period. The remaining six-month period of the year however remains cloudy, with internal uncertainties stemming from the Bank's tech investments. Fee & Commission Income ↑ 128% FX Gains ↑ 74%...

Markets ● 1 week ago
Low Forex Supplies Threat To Proplastics Inventory Management

The ZSE’s piping specialist managed to double revenue from the previous half year period, overturn a loss and maintain a solid financial position. Revenue (infl.adj) ↑ 120% Profit ↑ 197% Despite the generally positive set of financials recorded in the period, the Group continues to face logistical constraints stemming from foreign currency shortages. In its most recent set of fina...

Stock Market ● 2 weeks ago
ZSE halts bloodbath as market heavies recover

The ZSE somersaulted almost erasing its prior session loss as demand recovered in Tuesday’s trades. The All Share Index notched by 0.67% to close at 6645.03 points. Gains were stimulated by market heavies after a huge jump of 1.4% which outweighed the 0.87% decline in penny stocks. The positive sentiment was spread across bourses as Padenga firmed by 20% on the VFEX after trading a total of 5...

Markets ● 2 weeks ago
All-Round Growth Recorded in Latest Cassava Trading Update

Cassava Smartech's performance in the quarter ended 31 August 2021 was well-rounded and reflected significant growth from the previous year’s comparative period. Group Revenue ↑ 70% Wallet Funding ↑ 54% Steward Bank Revenue ↑ 300% Group revenue rose by 70% in the period and was driven by higher transaction activity than 2020’s comparable period. Similarly, the Group reported a 63% revenue...