Sales at the world’s largest brewer, AB InBev, rose almost a third in SA at the start of 2022, driven by its popular Carling Black Label beer.
AB InBev said on Thursday in its results for the three months to end-March that revenue grew 30.7% year on year, helped by a one-month ban on alcohol sales in the first quarter of 2021. This is almost three times as high as the 11.1% year-on-year increase in global revenue.
Carling Black Label led the way in SA, growing 40%, followed by the group’s global brands and its beyond beer portfolio, which includes the ciders Brutal Fruit and Flying Fish, climbing 30% locally.
The Belgian giant listed on the JSE in January 2016 when it completed its $122bn takeover of SABMiller, and is now valued about R1.561-trillion on the local bourse.
The company, which operates in five geographic regions — North America, Middle America, South America, EMEA and Asia Pacific — has a primary listing in Belgium and another secondary listing in Mexico.
About $10bn in goodwill is connected to the SA operation, which represents about 8% of the group’s goodwill (a measure of the value of a business in terms of its reputation with customers).
The earnings before interest, taxes, depreciation and amortisation (ebitda) of its SA operations jumped 40%, compared to 7.4% across the board. AB InBev expects ebitda to grow 4%-8% worldwide in the medium-term.
Its BEES platform — a digital ordering platform that connects retailers, bars and restaurant owners with wholesalers — now represents 89% of its revenues in SA.
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