- Total volumes in 2Q down 17.1%
- HY EBITDA declined by 24.7%
- Revenues for global brands remain low
Harare- AB InBev, parent company of Delta Beverages continued to suffer the effects of the COVID-19 pandemic on its operations in the second quarter and half year of 2020 which have resulted in poor volumes performance.
The Group’s total volumes declined by 17.1% in the second quarter with own beer volumes down by 17.2% and non-beer volumes down by 15.5% while the half year period saw a 13.4% decline in volumes with own beer volumes down by 14.0% and non-beer volumes down by 7.6%.
According to the Group, the decline was primarily driven by the impact of the COVID-19 pandemic which led to a shutdown to beer operations in key markets such as Mexico, South Africa and Peru.
The Group however, registered 0.7% volumes growth in June after seeing a significant recovery in Mexico and South where the resumption of operations was met with robust consumer demand.
“Revenue per hl declined by 0.6%, leading to a total revenue decline of 17.7%”, the Group said.
Combined revenues for the Group’s global brands, Budweiser, Stella Artois and Corona declined by 16.6% globally and 12.6% outside of their respective home markets in the second quarter and by 14.1% globally and 14.9% outside of their respective home markets in HY20.
The Group recorded an EBITDA of 3 414 million USD in the quarter, representing a decrease of 34.1% and a decline of 24.7% to 7 363 million USD in the half year period.
The Group attributed the decline to the top-line decline and lower operational leverage, especially in the beginning of the quarter when the Group faced significantly reduced volume.
Normalized profit attributable to equity holders of AB InBev was 921 million USD in Q2 from 2 319 million USD in the prior comparative period and in HY20, it stood at 76 million USD from 4 714 million USD in the same period last year.
The Company believes it is well-positioned for a strong recovery as its profitability is industry-leading which allows it to weather even extreme volatility.
Equity Axis News