Anheuser-Busch Inbev Sa Receives a Buy from Susquehanna

However, price rises and consumer shifts to more expensive beers meant revenue grew by 7.9 percent. Both its top and bottom line are expected to drop from the same quarter previous year, when AB InBev earned $1.42 a share on revenue of $12.24 billion. Adjusted earnings per share fell 28 percent to $1.02, weighed down by accounting adjustments related to hedging of share-based payment programs.

Further to the announcement on 13th October that AB Inbev is to make a $100bn offer for rival brewer SABMiller, the two brewers have announced that the deadline for a formal offer is to be extended until 4th November. AB InBev has been grappling with a two-decade downturn in Budweiser sales and a recent decline in sales of Bud Light.

AB InBev shares gained as much as 2.5% in Brussels.

Oil giants, pharmaceutical companies and more will reveal their third-quarter earnings results Friday, starting with ExxonMobil (XOM – Get Report), Chevron (CVX – Get Report), Phillips 66 (PSX – Get Report), CVS Health (CVS – Get Report) and AbbVie (ABBV – Get Report). “Here is evidence for ABI starting to achieve revenue synergies from a company they have bought in the recent past”, said Mr. Edwardes Jones.

Costs of sales per hectoliter will rise by low to mid- single digits, higher than previously forecast, AB InBev said.

The multinational – based in Louvain, Belgium – is now rounding up financing to secure the deal, valued at about $106 billion. The group said it has completed due diligence and has reconfirmed the key details of the offer.

In Brazil, revenue rose 10.5% on an organic basis as the company benefited from comparison with the year-earlier quarter in which beer volume growth slowed following the World Cup.

For the quarter, the company’s gross profit margin widened to 60.9% from 59.4%.