InBev Bud deal on track despite profits slump
InBev has reported a third-quarter drop in profits of nearly 14% as the cost of making and packaging beer soars.
InBev has reported a third-quarter drop in profits of nearly 14% as the cost of making and packaging beer soars.
The brewing giant, due to merge with US rival Anheuser-Busch before the end of the year to form the world's largest brewer, blamed rising costs for grain malt and aluminium for the drop in profits.
July to September profit was €447 million (£362 million), down from €519 million (£421 million) a year ago. Total sales rose in the same period by 7.7% percent to €3.9 billion (£3.2 billion).
Chief financial officer, Felipe Dutra, said he expected these costs to ease in the fourth quarter compared to a year ago when prices first started to go up.
InBev, makers of Stella Artois and Becks, said it was still committed to its "binding deal" to buy Budweiser producers Anheuser-Busch for $52 billion. Analysts have speculated that the company might renegotiate the deal because Anheuser shares have slipped as a result of the financial crisis.
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