Anheuser-Busch Credits World Cup For Helping Boost Profits During Second Quarter
A surge of beer-drinking during the FIFA World Cup "boosted profits" at A-B InBev during Q2, "leaving the group optimistic about future sales after showcasing its brands to billions of people," according to Matthew Dalton of the WALL STREET JOURNAL. The company yesterday said that Q2 revenue rose 5% to $12.2B "after adjusting for special items, reflecting World Cup-related sales in June and the brewer's strategy to sell more upmarket beer." Sales in Brazil, which is A-B's second-largest market, rose 7.2% "with about a fifth of soccer-related growth likely to come in the current quarter." A-B CFO Felipe Dutra said that the company's "focus is more on the long-term effect of the World Cup." Dutra: "The before, during and after impact in terms of brand equity and brand awareness should not be underestimated and is potentially more valuable. ... Net-net the World Cup was in line, if not ahead of our expectations" (WSJ.com, 7/31). At presstime, shares of A-B InBev were trading at $108.27 per share, down 1.3% from the close of business yesterday (THE DAILY).
TOURNEY LEAVES ITS MARK: The WALL STREET JOURNAL's Monga & Chasan noted more than 100 public companies "have already talked about the impact" of the World Cup on their businesses during Q2. Game plans were "critical, as they were on the fields, and there were some surprising feats and missed opportunities" (WSJ.com, 7/30).