InBev, the world's largest beer producer, beat expectations with an 18 percent rise in first-quarter core profit on growth in Latin America, but its shares fell as investors eyed its relatively high valuation.
The brewer of Stella Artois, Beck's, Brahma and Leffe achieved first quarter earnings before interest, tax, depreciation and amortisation (EBITDA) of 962 million euros ($1.3 billion) compared with 812 million euros a year earlier. Analysts had expected an earnings figure of 910 million euros and revenue of 2.96 billion euros, based on a Reuters poll of 16.
Turnover totalled 3.051 billion euros, a like-for-like increase of 9 percent, resulting in the much-watched EBITDA margin rising to 31.5 percent. EBITDA in Latin America rose to 667 million euros, against analysts' expectations of 640 million euros, driven by a 5.1 percent rise in Brazilian beer volumes.
In its other main market, western Europe, core profit dropped 2.2 percent to 98 million euros, against analysts' expectations of a rise to 119 million. Volumes fell 1.1 percent, while higher commodity costs hit earnings. British volumes fell 8.6 percent.