AB InBev shares sink as profit target is missed
DURBAN – The share price of Anheuser-Busch InBev (AB InBev) declined by more than 11percent on the JSE on Friday morning, wiping more than $20billion (R292bn) from its market capitalisation after the world’s largest brewer missed its revenue and profit targets for the quarter to the end of September.
The group’s revenue for the quarter came in at $13.2bn, below analysts’ expectations of $13.4bn.
As a result, the share declined to R1198.41 a share, down from the previous day’s closing price of R1343.10. It recouped some of the losses in the afternoon before closing 9.91percent down at R1210.
Neil Wilson, a chief market analyst at Markets.com, said AB InBev’s third-quarter sales and profit were below the market’s expectations.
“Yes, they missed on profits and revenues and have had to lower full-year guidance as a result. The revenue was $13.2bn below the expected $13.4bn, and it achieved organic sales growth of 2.7percent compared to 4.7percent expected by the market,” Wilson said.
Source: iol.co.za
