Earnings Preview: Global sales might save Budweiser maker AB InBev in Q4 from US slump

International beer giant Anheuser-Busch InBev SA (BUD), better known as AB InBev, is scheduled to post its fourth-quarter 2018 results on Feb. 28.

The maker of iconic beers such as Budweiser, Corona and Stella Artois, is touted by analysts to post 13.9 billion in revenue generating $1.15 per share in earnings.

Including the last quarter’s estimates miss, AB InBev has fallen short of the consensus in eight out of ten quarters, looking back.

Even though the market expects more than a 10% jump in quarterly profits, another miss could certainly dent the stock.

AB InBev brands have seen itself lifted to the premium category in international markets, along with the market trend and sifter beer sales could pull the top-line down.

In the US markets, consumers shifting to a healthy lifestyle have also hit the beverage giant. This also saw a rise in sparkling water and wine sales.

Despite being the ‘king’ of beer makers, the market seems to have caught up with the giant. US sales have fallen 1.4% in the first nine months of fiscal 2018. Lower volumes and sliding market share of its iconic Budweiser and popular Bud Light brands continue to impact AB InBev.

This can also be seen in the stock market. Shares have slid a little over 20% in the last six months — much lower than the industry slip of about 8.8%.

However, globally, Budweiser, Corona and Stella Artois brands still seem to be gaining. The FIFA World Cup sponsorship seem to also have positively impacted brand value and sales. New regions such as Colombia, Nigeria and South Africa have contributed to the top line.

Global brand revenue moved up more than 7% last quarter — indicating that if anything can save the ailing giant, it is sales outside the home base.

 

 

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