Anheuser-Busch InBev reported profit growth that trailed estimates as weakness in Europe and China compounded the brewer’s inability to stem declines in its biggest market, the US.
The shares dropped after the Budweiser maker said adjusted earnings before interest, taxes, depreciation and amortization rose 1.3 per cent on an organic basis. That compares with the 7 per cent growth expected by analysts -- a “big miss,” according to Societe Generale’s Andrew Holland.
AB InBev joins rivals such as Heineken and SABMiller Plc, along with spirits maker Diageo Plc, in falling short of estimates this period as consumers reduce spending in developing and emerging markets. While Europe’s softness is not new, China has been a particular sore spot in recent months as the slowing economy there hinders everyone from trench-coat maker Burberry Group Plc to food maker Nestlé .
“It’s disappointing and there seems to be weakness across the board,” Trevor Stirling, an analyst at Sanford C. Bernstein, said in an interview. “Some of it is one-offs, but organic growth this year will likely come in at the bottom-end of what they were hoping for.”
Bloomberg News edited by HI