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Top brewer AB InBev sees worse ahead, but hope in China

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Top brewer AB InBev sees worse ahead, but hope in China

Top brewer AB InBev sees worse ahead, but hope in China

The world's biggest brewer, AB InBev, says it sees signs of a rebound in China, but warns the next quarter will still be worse overall.

Julian Satterthwaite reports.

The world’s biggest brewer says things are going to get worse before they get better.

AB InBev on Thursday (May 7) predicted a “materially worse” second quarter.

That as lockdowns interrupt some production and keep bars and restaurants closed.

South Africa has even banned sales of alcohol, while Peru shut down beer production.

But the maker of Stella Artois, Corona and other brands sees signs of hope in China.

The volume of its drinks consumed there fell by almost a half in the first three months of the year - but was down just 17% in April.

The improvement comes as lockdowns start to ease and bars reopen.

Overall, first quarter core profit came in at just under 4 billion dollars.

That was down nearly 14% on the year, but better than forecast.

AB InBev saw a surge in store sales, but seemingly not enough to compensate for shut bars.

The firm confirmed that the ten billion dollar sale of its Australian unit to Asahi Group of Japan would go ahead.

The deal should close on June 1.

AB InBev shares were up over 3% in morning trade.




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