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AB Inbev thanks World Cup for boosting beer sales
Business Digest: Global brewing giant saw sales of beer increase 2 per cent in the second quarter
Brewing giant AB Inbev says it has good weather and the World Cup to thank for a rise in profits in the last quarter.
The Belgian company behind brands such as Budweiser, Becks and Stella Artois saw profits rise to $1.5bn between April and July compared to $1.35bn a year ago. Earnings per share rose four cents to 72 cents.
Budweiser was a major sponsor of the World Cup, which started in June, and benefited from the exposure to billions of television viewers worldwide. The company's sales of beer and soft drinks increased by 2 per cent and 5.5 per cent respectively.
AB Inbev expects its profits to continue to grow for the rest of the year, mainly due to the fact that its major markets are coming out of recession.
But the recent surge in wheat and barley prices means that the cost of sales per hectolitre is expected to "run flat or increase in the low single digits for the full year". AB Inbev's share price has already suffered from the trend in grain prices, falling nearly eight per cent last week.
Read a full report at the Financial Times (registration required). ·
