For AB Inbev, operation in Brazil will grow even with crisis

"I still see room for significant growth in Brazil, including the brands Budweiser, Corona and Stella Artois. There is also room to expand sales in the segment of beer-based drinks such as the Skol Beat Senses, "said Carlos Brito, ceo of InBev, during a teleconference with analysts.
The company estimates for the country a growth in sales of medium-to-high single digits.
According to Brito, Brazil's team has focused on controlling costs and increasing profitability, looking mainly sales opportunities more profitable lines.
For the China market, the company also expects increased sales from the third quarter, especially the line of high added value, with the Budweiser brand. Budweiser has kept a double-digit growth in the second quarter and also in the first half.
According to the Executive, the weak result for the second quarter in China stems from a favourable climate, with excessive rainfall for the period, and also by the weak consumption in all market of beers.
"The interest in China is to make participation in several threads, especially in premium beers. We have growth with Budweiser in this segment. And now, with the brands Corona and Stella Artois, we grow more ", said the Executive.
The company reported still waiting improves the results of the Mexico and the United States, with a reduction of expenditure in the second half of the year and a rise in sales.
In the second quarter, the company recorded a fall of 24.1% in net profits compared to the same range of 2014, to $ 1.98 billion. The brewery joined the result to the fall in the volume of sales in Brazil and China, mainly, and the unfavorable impact of the conversion of other currencies to the dollar.
The volume produced by AB Inbev fell 2.2 percent, to 119 million hectolitres. The net revenue shrank 9.4 percent, to $ 11,052 billion. The earnings before interest, taxes, depreciation and amortization (Ebitda) fell 14.3 percent, to $ 4.16 billion.
For the year 2015, the company reaffirmed that it expects growth in sales volumes of United States, Brazil and Mexico and resumption of growth in China in the second half of the year. AB InBev designs increase of one digit in the cost of sales per hectoliter due to product mix and the unfavorable exchange rate. The company also provides for an increase of one digit in the costs of distribution and sales and marketing investments. AB Inbev reported that will maintain, in the second half of the year, the quest for acquisitions and mergers in the beer market. The company, however, will act in a more restricted in acquisitions. The prospect of capital allocation in the year will remain unchanged. But our investment will be more focused on organic growth. Let's evaluate m & a opportunities, but companies that have focus, structure and price that make sense. Will be restricted movements, "said Brito.
The company reported that for the year capital expenditures of approximately $ 4.3 billion.
AB InBev also designs for the year keep net debt equivalent to two times its Ebitda. In the first half of the year, according to Bashir, the company's net debt was equivalent to 2.48 Ebitda. Net debt in the first half reached $ 44,4 billion, up 5.5%.