Anheuser-Busch Inbev SA/NV, considered the world's largest brewer, reported higher profit for the fourth quarter of 2017 as its Brazilian business rebounded and savings flowed from its acquisition of SABMiller in 2016.
Fourth-quarter normalized profit attributable to equity holders surged to $2.05 billion, or $1.04 per share, from $919 million, or 43 cents per share, in the prior-year period.
Normalized EBITDA rose 21% year over year to $6.19 billion from $5.25 billion, said the Belgium-based company, which boasts global brands including Budweiser, Stella Artois and Corona.
Revenue for the quarter grew 8.2% to $14.60 billion from $14.20 billion a year earlier while gross profit increased 10.3% to $9.43 billion from $8.80 billion.
In Brazil, AB Inbev's business recovered in the fourth quarter, with revenue increasing by 13.3% and EBITDA growing by 23.7%. The company said it was expecting a difficult first quarter in the country due to an earlier Carnival, an annual festival, and poor weather.
"However, we believe our business is in a much better position today, with a healthy portfolio of brands, including our premium brands, and we have the commercial plans in place to further accelerate EBITDA growth, even if industry headwinds persist," AB Inbev said on its outlook for Brazil.
In the fourth quarter, AB Inbev also recorded higher revenues and EBITDA in Mexico, Colombia, South Africa and China.
The company said it realized $381 million in synergies and cost savings with the integration with SABMiller, bringing the total so far to $2.13 billion. The company maintained its target of $3.2 billion in synergies and cost savings from the acquisition.
For 2017, AB Inbev reported normalized profit of $7.97 billion, or $4.04 per share, up from $4.85 billion, or $2.83 per share, in 2016. Full-year normalized EBITDA rose 13.4% to $22.08 billion from $16.75 billion.
Full-year revenue grew 5.1% to $56.44 billion from $45.52 billion in 2016, and gross profit increased 6.7% to $35.06 billion from $27.72 billion.
