The world's leading brewer, AB InBev, said Thursday its third-quarter net profit slid by over third as costs of beer ingredients rose and sales growth slowed.
In the period from July through September, the group that includes the Budweiser, Stella Artois and Corona brands posted net profit of just over $1 billion, compared to $1.58 billion during the same period last year.
Third-quarter sales rose by 7.9 per cent to $14.3 billion, but that was much slower than the 27 per cent growth rate in the second quarter.
A three-per cent increase in operating earnings to $5.2 billion was less than half the rise in sales due to adverse exchange rate effects "and commodity headwinds, coupled with elevated supply chain costs in certain markets," the brewer said in a statement.
Global supply chains have become snarled with delays in sea and land transport in many countries, driving prices higher.
Nevertheless, AB InBev raised its outlook for the year, saying it now expects operating earnings to grow by 10-12 per cent this year, due to higher sales volumes and higher prices for customers.
One area of growth the company noted was direct-to-consumer sales, which surpassed $1 billion in the first nine months of the year thanks to booming online sales.
Check out the latest DH videos here:
Deccan Herald is on WhatsApp Channels| Join now for Breaking News & Editor's Picks