Anheuser-Busch Cos. Inc. (BUD), the largest U.S. brewer, said Wednesday that second quarter earnings rose 1.8% from last year, helped by improved sales of its core brands and the successful launch of Bud Light Lime. The company's quarterly earnings per share also came in above analysts' expectations. At the same time, the company raised its quarterly dividend rate by 12.1%.
The St. Louis, Missouri-based company reported net income for the second quarter of $689.2 million or $0.95 per share, compared to $677.0 million or $0.88 per share for the year-ago quarter.
The year-ago quarter results included a gain of $9.9 million or $0.01 per share from the sale of Spanish theme park.
On average, 9 analysts polled by First Call / Thomson Financial expected the company to earn $0.93 per share for the second quarter.
Gross profit for the quarter increased to $1.72 billion from $1.66 billion a year ago, while operating profit grew to $929.8 million from $901.3 million last year.
Anheuser-Busch, maker Budweiser and Michelob, said net sales for the second quarter increased 4.6% to $4.72 billion from $4.52 billion in the same quarter last year. Six analysts has a consensus revenue estimate of $4.71 billion for the second quarter.
"Anheuser-Busch achieved solid sales and earnings per share growth for the quarter and first half of the year," said August Busch IV, president and chief executive officer of the company.
Second quarter U.S. beer segment sales increased 4.5% due mainly to 0.5% higher beer sales volume, and a 3.2% increase in revenue per barrel resulting from price increases late last year and in the first quarter as well as favorable brand mix.
International beer sales rose 17% mainly on higher sales in China and Canada, while entertainment revenues grew 4% mainly as a result of increased attendance. However, packaging segment sales declined 3% due to lower can manufacturing revenues.
For the first six months of the year, the company reported net income of $1.20 billion or $1.65 per share, compared to $1.19 billion or $1.55 per share for the same period last year.
Net sales for the first-half increased 5.3% to $8.82 billion from $8.37 billion in the prior year period.
The company's U.S. market share in the first six months fell to 48.8% from 48.9% in the prior year period.
The company plans to implement price increases on the majority of its U.S. beer volume in September and October. The pricing initiatives will cover about 85% of the company's domestic volume and will be tailored to selected markets, brands and packages.
Separately, Anheuser-Busch said it has increased the regular quarterly dividend rate on its common stock by 12.1% to $0.37 per share from $0.33 per share payable on September 9 to shareholders of record on August 11.
Last week, Anheuser-Busch agreed to be bought by Belgian brewer InBev NV for $52 billion. The deal is expected to be complete by the end of 2008 and the combined company will be called Anheuser-Busch InBev, which will have about 300 brands and annual net sales of $36 billion.
InBev launched a $65 per share unsolicited bid for Anheuser-Busch last month, but Anheuser-Busch claimed the offer undervalued the company. In a move to soften Anheuser-Busch's stance, InBev later sweetened its offer by $5 per share.
The combined company is expected to be a global leader in the beer industry and one of the world's top five consumer products companies. The expanded company will be geographically diversified, with leading positions in the world's top five markets, China, U.S., Russia, Brazil and Germany.
About 40% of the combined company's revenues will be generated in the U.S. and all of Anheuser-Busch's U.S. breweries will remain open. The U.S. beer market, valued at about $97 billion, is the second largest in the world by volume, next to China. Beer tops the list of alcoholic beverages in the U.S. with a 57% market share.
Tough economic conditions and the insatiable thirst to increase market share have encouraged consolidation in the brewing sector. London-based SAB acquired North American brewer Miller Brewing from Philip Morris group for $5.6 billion in 2002 to form SABMiller (SAB.L).
InBev itself is the product of a merger between Belgium's Interbrew and Brazil's Am-Bev. In March 2004, Interbrew, which was then the world's No.3 beer firm acquired Am-Bev, ranked No.5, for $11.5 billion in a share swap deal.
In February 2005, U.S.-based Adolph Coors Co. and Canadian brewer Molson Inc. merged to form Molson Coors Brewing Co. (TAP) and now has about 11% share in the U.S. beer market. Coors acquired Molson for $3.4 billion.
As recently as October 2007, SABMiller and Molson Coors revealed their plans to combine their U.S. operations in order to better compete with Anheuser-Busch and increase their market share in the U.S. The joint venture will operate under the name MillerCoors and will have a market share of about 30%.
Early this year, British brewer Scottish & Newcastle agreed to a buyout by its rivals Heineken and Carlsberg for $15.4 billion.
Anheuser-Busch shares are currently trading at $67.37, up 12 cents. The shares are trading in a 52-week range of $45.55 to $67.55.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.