First quarter net profit of the world’s leading distiller Anheuser-Busch InBev NV soared by 75% mainly due to bigger beer sales and lower taxes and financing costs.
For the period January to March net profit increased to $1.69 billion as compared to $964 million during previous, after a steep fall in financing expenses and declining taxes. Chief Financial Officer of AB InBev’s, Filipe Dutra, informed that the firm was benefiting from increasing profits in countries such as Brazil, in which the tax rate is not as high as in Europe and the U.S.
Revenue increased by 3.7 percent to $9.33 billion, because increased sales in Asia and Latin America compensated declining sales in Europe.
In the U.S., sales of beer increased because of the hot climate in a few of the central states and also on the East Coast and an increase in rate of employment. But, AB InBev cautioned that sales may decrease in the 2nd quarter because it reduced more shipments during the 1st quarter to avoid increased transportation charges in the summer.
Simultaneously, a raise in the minimum allowable wage in Brazil must increase beer sales volumes as well as profit margins there.