AB InBev tips profit surge

City A.M. Reporter
Anheuser-Busch InBev, the world's largest brewer, forecast profit would grow at an even faster pace in the fourth quarter than the third after beer consumption shot up in growth markets Brazil, China and Russia.

The brewer of Budweiser, Stella Artois and Beck's said growth of its much-watched core profit (EBITDA) would be "materially" higher than that of the third as cost fell, such as on marketing for this year's soccer World Cup.

AB InBev, which produces almost 20 per cent of the world's beer, said EBITDA in the third quarter rose 9.1 percent on a like-for-like basis to $3.53bn (£2.20bn) , little different from the $3.54bn forecast in a Reuters poll of 17 brokers.

AB InBev said in August it expected core profit growth in the third quarter to be stronger than the 5.4 per cent of the first half, with a further increase in the fourth quarter.

This reflected a rebound in revenues from a weak second half last year, especially in the United States where prices rose, and also the timing of marketing costs this year, with more in the first half linked to the World Cup.