The world''s largest brewery, AB InBev has profit affected by weak results in Brazil

LONDON-Anheuser-Busch InBev (AB InBev), parent company of AmBev in Brazil, announced this Thursday, 2, which had net income of $400 million in the fourth quarter of 2016, well less than the gain of $2.29 billion obtained in the same period of the previous year. The revenue per hectolitre rose 3.9 percent on the same comparison, thanks to a reduction in costs and an increase in sales of premium brand beers, but the total volume of beer decreased by 3.3%.
The main factor of weakness in recent months was the Brazil 2016. The second largest market of AB InBev made a profit before interest, taxes, depreciation and amortization (Ebitda) of the company fell 33% between October and December compared with the same period a year before. Excluding Brazil, the Ebitda of the AB InBev rose 6.4% in the fourth quarter.
"It was a tough year, but we remain committed to an attractive market in Brazil and we think we have the right strategy to bring the business back on track," said the Chief Financial Officer of AB InBev, Felipe Dutra.
The AB InBev, the world''s largest brewery, also raised your forecast for the savings you expect as a result of the merger with SABMiller, $2.45 billion to $2.8 billion. The figure includes $1.05 billion in cost cuts that SABMiller was seeking before the merger is complete.
The last quarter was the first in which the results of SABMiller were incorporated into AB InBev.