Brewing Giant InBev Boosts Profit, Despite Market Pressure | World| Breakings news and perspectives from around the globe | DW | 14.08.2008
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Brewing Giant InBev Boosts Profit, Despite Market Pressure

Brewing giant InBev beat analysts' second-quarter earnings forecasts, despite rising costs for energy and raw materials.

Budweiser beer sign above Anheuser Busch headquarters

InBev made headlines with its plans to buy US brewer Anheuser Busch

The Belgian-Brazilian brewing behemoth, which aims to grow even bigger by swallowing up its American competitor Anheuser-Busch sometime this year, surprised analysts.

On Thursday, Aug. 14, InBev said second-quarter net earnings were up 8.6 percent, to 542 million euros ($806 million) despite cost increases. Analysts had expected a drop in earnings.

"While we are far from satisfied with our performance year to date, the second-quarter results already show an improvement versus our first quarter," the company said in a statement.

"This performance is in line with expectations."

Stumbling block in Russia

InBev CEO Carlos Brito said the main market where the company had underperformed was Russia. "Our value and price brands have lost share at a faster pace than we have beeen gaining share with our core and premium brands," he told reporters.

Sales also showed some weakness in Brazil, another key market. But elsewhere in North and Latin America and the Asia-Pacific, "results were positive," he said.

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