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ABOUT R200 billion 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 percent 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 R200 billion 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 percent 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 percent to R1 226, having earlier fallen as much as 10.7 percent. — Business Day
Online Reporter