ABI Profits Up
Profits climb even as volume drops
Brewing group Anheuser-Busch InBev announced that its second-quarter net profit rose 28% even as total volumes decreased 1.1% from a year earlier. Volumes were down 0.7% in North America, with a sharper 3.5% decline in Western Europe. United States volumes were down 1% in the quarter.
Demonstrating how cost cutting in its US operations made a difference, the global giant had adjusted earnings (before interest, taxes, depreciation and amortization) of $3.6 billion, a 13% increased over the combined adjusted profit of Anheuser Busch and InBev a year earlier. CEO Carlos Brito said the integration of Anheuser-Busch had continued in line with the group's expectations, with the total savings in the first half of the year reaching $610 million. The company sold $3.6 billion worth of assets in the quarter, and paid down a $7 billion note in November, before maturity.