AB InBev falls 10% after lowering profit expectations
About R200bn was wiped off the market capitalisation of the world's largest brewer on Friday, after it warned of lower profit growth
The share price of the world's largest brewer, AB InBev, slumped 10% on Friday morning, after it warned of falling sales in South Korea and Brazil due to price increases in those countries.
AB InBev's slide has wiped about R200bn off its market capitalisation, and has put it on track for its worst monthly performance since listing in 2016.
Revenue growth in the company's full year to end-December was still expected to be strong, the maker of Stella Artois and Budweiser said; however, growth in earnings before interest, taxation, depreciation amortisation (ebitda) was only expected to be “moderate”.
Total volumes fell 0.5% in the third quarter to end-September, the brewer said, with price increases in South Korea and Brazil prompting volume declines, exacerbated by economic pressure on consumers in those countries.
Solid growth from markets such as Mexico, SA and Colombia was more than offset by declines in China and the US, both primarily driven by shipment phasing impacts, the company said.
At 11am, AB InBev's share price was down 8.72% to R1,226, having earlier fallen as much as 10.7%.