South African Breweries’ (SAB) top- and bottom-line growth frothed over by double digits, following “record volumes” in the first quarter of its financial year.
Revenue increased by mid-teens in the three months to March 31, with revenue per hectolitre (hl) growth of high-single digits, driven by pricing actions and continued premiumisation, CEO Richard Rivett-Carnac said yesterday in a statement.
“Our performance was led by our premium portfolio, driven by Corona and Stella Artois,” he said.
Volumes grew by mid-single digits, which according to SAB’s estimates, meant it was continuing to outperform the industry in total alcohol, beer and in its Beyond Beer segments. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by the mid-twenties, with margin expansion of approximately 350 basis points.
“In a tough economy we sustained our momentum from 2023 into the first quarter of 2024. This is evidenced by record-high volumes for the quarter and double-digit top- and bottom-line growth,” Rivett-Carnac said.
The diversified brand portfolio helped to deliver balanced growth across the group’s Beyond Beer, premium beer and core beer brands, he said.
Meanwhile, SAB’s parent, the Belgium-based multinational Anheuser-Busch InBev, which has a listing on the JSE and on other internal bourses, yesterday reported a 5.4% increase in EBITDA with margin expansion, and a 16% increase in underlying earnings per share.
“The strength of the beer category, our diversified global footprint and the momentum of our megabrands delivered another quarter of broad-based top- and bottom-line growth,” and the group’s management was confident in delivering on the 2024 growth ambitions, CEO Michel Doukeris said.
In the first quarter, group total volumes declined by 0.6%, with own beer volumes down by 1.3% and non-beer volumes up by 3.5%. Underlying EPS was $0.75, an increase from $0.65 in the first quarter of 2023.
Doukeris said they expect EBITDA to grow in line with their medium-term outlook of between 4% and 8%. Net pension interest expenses and accretion expenses were expected to be in the range of $220 to $250 million per quarter, depending on currency and interest rate fluctuations. The average gross debt coupon for the year was forecast at about 4%. Capital expenditure was forecast to be between $4 billion and $4.5bn for the 2024 financial year.
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