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Anheuser-Busch Inbev Q3 Profit Climbs, Volume Down; Confirms FY19 View

Beer manufacturer Anheuser-Busch InBev (AHBIF.PK,BUD) reported Friday that its third-quarter profit attributable to equity holders surged to $3.00 billion from last year's $959 million. Earnings per share grew to $1.51 from $0.49 last year.

Normalized profit attributable to equity holders was $2.41 billion, higher than last year's $1.52 billion. Normalized earnings per share improved to $1.22 from $0.77 a year earlier.

Underlying profit was $1.87 billion, compared to $2.19 billion in the previous year. Underlying earnings per share were $0.94, compared to $1.11 last year.

EBITDA was flat in the quarter, with EBITDA margin contraction of 107 bps to 40.2 percent, as a result of CoS headwinds and the phasing of sales and marketing investments.

Revenue increased to $13.17 billion from last year's $12.92 billion. Organically, revenues grew 2.7 percent in the quarter, with revenue per hl growth of 3.0 percent.

Total volumes decreased 0.5 percent organically to 143.42 million hls, with own beer volumes down 0.9 percent and non-beer volumes up 4.0 percent.

Further, AB InBev board has approved an interim dividend of 0.80 euro per share for the fiscal year 2019.

Looking ahead for fiscal 2019, the company continues to expect to deliver strong revenue growth.

"Overall, we remain confident in our strategy and the fundamental strength of our business, though we now expect moderate EBITDA growth in FY19 given the additional headwinds faced in 3Q19 which we anticipate will continue into 4Q19," the company said.

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