Anheuser-Busch earnings surprisingly strong

Posted Jul 26th 2007 12:20PM by Tom Barlow
Filed under: International Markets, Earnings Reports, China, Brazil, Anheuser-Busch InBev (BUD), Mexico, Canada

After warning in May that it would fall short of expectations in the second quarter, Anheuser-Busch Companies, Inc. (NYSE: BUD) surprised the analysts by posting a strong performance [pdf]. It reported a net sales increase of 6.1% and an increase in diluted earnings per share of 7.4%. The EPS of $0.88 exceeded the $0.87 projection of analysts polled by Thompson Financial.

Unlike first quarter results, this quarter showed strong sales in the U.S. as well as internationally. U.S. beer sales volume was up 2.3%, due in part to the success of import brands that the company distributes. This and price increases resulted in a 3.1% increase in revenue.

International sales continued to grow, up 4% due primarily to China, Canada and Mexico, partly offset by soft sales in Great Britain. Anheuser-Busch branded products grew 2.2% in volume worldwide.

The performance of Anheuser-Busch's entertainment sector, e.g. Busch Gardens, was up over $5 million as well, due to increased attendance and pricing.

The bottom line was moderated by increasing production and marketing costs, the latter a sign that the beer market continues to mature.

Anheuser-Busch's stock has been complicated by speculation by Citigroup that the company will eventually merge with InBev within the next two years.

Tags: alcohol market, alcohol sales, AlcoholMarket, AlcoholSales, anheuser-busch, Anheuser-Busch 2nd quarter, anheuser-busch earnings, anheuser-busch sales, Anheuser-busch2ndQuarter, Anheuser-buschEarnings, Anheuser-buschSales, beer market, BeerMarket, BUD, BUD 2nd quarter, bud earnings, Bud2ndQuarter, BudEarnings, inthenews, modelo, tsingtao

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Reader Comments (Page 1 of 1)

7-27-2007 @ 4:27PM

jmbwholesale said...

Well, don't get too excited, a lot of Baby Boomers are keeling over off at an alarming rate due to cerosis of the liver and cancer, heart attacks and well, from all these imported ingredients from foreign sources. Pretty soon, all the food and drinks will be supplied by people who would love for all of us to lay down our arms and die. Let's find some big companies who are willing to keep American products just that, Pure American! While I am on my soap box, the next time any of you sell your property to a foreigner, remember, they do get to own the property in the USA unlike if we go to Mexico and buy property (we only get to keep it for a while and then it reverts back to their government, keeping Mexico Mexican), so remember that you are selling your country as well. Buy American!