Why Anheuser-Busch InBev Stock Plunged Today
Shares of Anheuser-Busch InBev (NYSE: BUD) fell more than 10% on Friday, following the release of the beer giant's third-quarter results.
AB InBev's total volumes weakened slightly in the third quarter, as declines in major markets like China and the U.S. offset growth in other markets such as Mexico and South Africa. Despite the lower volumes, price increases and initiatives designed to foster sales of premium beers helped revenue rise 2.7% when adjusted for acquisitions and divestitures, to $13.2 billion.
Still, AB InBev's earnings before interest, taxes, depreciation, and amortization (EBITDA) were flat compared to the prior-year quarter, at $5.3 billion. EBITDA margin worsened by 107 basis points to 40.2%, due in part to higher commodity costs and higher sales and marketing expenses. Analysts had expected AB InBev's EBITDA to rise by 3%.
Source Fool.com
