InBev Lifts Cost-Savings Target as Earnings Miss Forecasts

By Nick Kostov

Anheuser-Busch InBev NV (BUD), the world's largest brewer, on Thursday raised its cost-savings target from its $100 billion-plus megamerger with rival SABMiller as it reported weaker-than-expected earnings after selling less beer in its second largest market, Brazil.

The maker of Budweiser, Stella Artois and Corona said it now expects to save at least $2.8 billion from the tie-up, up from $2.45 billion previously. This includes the $1.05 billion in cost savings SABMiller said it would target before the merger completed.

Net profit was $400 million for the three months to Dec. 31, down from $2.29 billion a year earlier, on revenue that rose 0.2% to $14.2 billion.

AB InBev added that it had already captured $282 million of the savings by Dec. 31.

Facing a decline in the popularity of its biggest brands in the U.S. and Western Europe, AB InBev completed bought rival SABMiller last year, making a huge bet that it could instead tap new growth in Africa and other emerging markets like Colombia and Peru.

-Write to Nick Kostov at [e-mail]

(END) Dow Jones Newswires

March 02, 2017 01:57 ET (06:57 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.