Anheuser-Busch InBev (NYSE:BUD) the world’s largest beer brewer reported its second quarter earnings this morning and investors are not happy. Many have been betting this year on beer and liquor being the new oil in terms of stock market gains, the phrase ‘brown is the new black’ was everywhere in the last few months. Revenue in the second quarter fell to $9.87 billion from $9.95 billion the year before, quarter over quarter gain was 5.77% vs. 10.54% the previous year. Profits were up to $1.961 billion up from $1.45 billion the same quarter in 2011, but fell from the previous quarter due to a lower operating margin.
AB InBev is the home to most of the brands you love, its portfolio includes: Corona, Beck’s, Stella, Budweiser, Hoegaarden, Quilmes, Labatt, Alexander Keith’s, Busch, Michelob, Kopkanee, and a slew of other smaller brands. Their acquisition of Corona this year put them as the top or second to top brand in 21 of the world’s biggest beer markets.
Sales in Brazil and China grew, and international sales of Budweiser increased by 1% but overall volume sold across all brands was down. In pre-market trading on the NYSE, BUD trimmed 3.17% to land at $78.50 and is not faring too much beter now that the market has opened.
Foodbeat’s take: BUD is showing signs of slowing growth and hopes that the acquisition of Corona will be the extra push they need to reverse that trend. When it comes right down to it whiskey is a better buy than beer in the stock market today and even within the beer industry Anheuser-Busch pays a rather low end dividend especially in comparison to Molson Coors (NYSE:TAP) and Companhia de Bebidas das Americas (NYSE:ABV).
Source(s): Wall Street Journal, Canadian Business