LOEWEN (dpa-AFX) - European brewers Anheuser-Busch InBev (BUD, AHBIF.PK) and Carlsberg AS (CABGY.PK) on Wednesday reported higher earnings for their respective third quarters, despite declines in sales volumes. Anheuser-Busch benefited from volume growth in Brazil, Argentina and China, but lost market share in the U.S. Carlsberg's revenues were hurt by the Russian market decline and the poor weather conditions in Northern & Western Europe.
Belgian brewer Anheuser-Busch's third-quarter profit attributable to equity holders of the company was $1.59 billion or $1 per share, higher than last year's $1.43 billion or $0.90 per share.
Normalized profit, which excluded certain items, rose 16.3 percent to $1.73 billion or $1.09 per share.
Earnings before interest, tax, depreciation and amortization or EBITDA grew 12.2 percent to $3.97 billion, and normalized EBITDA increased 5.5 percent.
Anheuser-Busch's quarterly revenue rose 3.6 percent to $10.22 billion from $9.32 billion in the previous year.
The revenue performance was driven by volume growth in Brazil, Argentina and China, and supported by consistent execution of brand building strategies across all of the company's markets.
Total volume for the quarter edged down 0.2 percent to 107.21 million hectoliter or hl, as a 6.4 percent rise in non-beer volumes were more than offset by 0.6 percent drop in own beer volume and a sharp 35 percent decline in third party products.
The company's market share in the quarter was ahead in Germany, Russia, Ukraine and China, but flat in Argentina and marginally lower in Canada and the United Kingdom. In the United States, market share declined 25 basis points reflecting ongoing impact of weak consumer confidence.
Looking ahead, Anheuser-Busch expects volumes to gain momentum in the fourth quarter as it cycles more favorable comparables in Brazil.
Danish brewer Carlsberg's third-quarter consolidated profit attributable to shareholders increased to 2.01 billion Danish kroner from 1.94 billion kroner in 2010. Earnings per share were 13.2 kroner, higher than 12.7 kroner last year.
Meanwhile, third-quarter operating profit was 3.28 billion kroner, down 20 percent organically, as 'weaker performance in Eastern Europe, higher input costs and higher sales and marketing investments, primarily in key markets in Eastern Europe and Asia, impacted profits.'
Net revenue also declined 2 percent to 17.44 billion kroner from 17.71 billion kroner in 2010, with flat organic development.
Total sales volumes of beer fell to 40.4 million hl from 40.8 million hl last year, mainly impacted by the Russian market decline and the poor weather conditions in Northern & Western Europe in July. Sales volume of other beverages also declined.
Looking ahead, Carlsberg continues to expect 2011 adjusted net profit growth of 5 to 10 percent and operating profit before special items around 10 billion kroner. For the year, the company still expects low single-digit decline in the Northern & Western European and Russian markets and continued growth in key markets across Asia.
BUD closed Tuesday's regular trading session at $57, up $1.79 or 3.24 percent.
In Copenhagen, Carlsberg is currently trading at 366.10 kroner, down 0.90 kroner or 0.25 percent. In the U.S., CABGY.PK settled on Tuesday at $13.82, up $0.82 or 6.31 percent.
Copyright RTT News/dpa-AFX
