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- The South African division of AB InBev has delivered double-digit revenue and profit growth.
- Its local beer market share has now moved ahead of its pre-pandemic levels.
- KwaZulu-Natal floods and rising commodity prices resulted in a more subdued fourth quarter.
- For more financial news, go to the News24 Business front page.
South African Breweries (SAB), the local unit of global brewing giant Anheuser-Busch InBev (AB InBev) has delivered record total full-year volumes for its parent after its beer market share moved ahead of pre-pandemic levels.
AB InBev said on Thursday that "focused commercial investment" and consistently executing its strategy for increasing the brand power of its "beer and beyond beer portfolios" had helped drive the South African performance.
Top local brand Carling Black Label "grew by mid-teens," while AB InBev also flagged Flying Fish, Brutal Fruit as top local performers with these alcohol brands all reporting double-digit revenue growth on a full-year basis.
But the fourth quarter of 2022 brought some headwinds for its South African operations due to production constraints at its Prospecton brewery, caused by floods in KwaZulu-Natal, which limited its ability to meet demand in the peak season.
Revenue grew by mid-single digits, while earnings before interest, tax, depreciation and amortisation (ebitda) declined by single digits "due primarily to commodity cost headwinds".
As for its SA business, the group said momentum continued into financial year 2022, delivering - according to its estimates - "all-time high total volumes, with beer market share ahead of [financial year 2019] pre-pandemic levels".
The company's global Beyond Beer business contributed about $1.6 billion (R29.1 billion) of revenue and grew by low-single digits, as global growth was partially offset by a soft malt-based seltzer industry in the US. However, in SA, Brutal Fruit and Flying Fish delivered 18% revenue growth.
At global level, the company reported revenue growth of 11.2%, while ebitda growth came in at the "top-end of our outlook", said AB InBev CEO Michel Doukeris in a statement.
However, AB InBev's shares on the JSE fell nearly 4% in morning trade as the market digested the news, with FNB portfolio manager Wayne McCurrie saying this was somewhat surprising, as the group did "not "look particularly expensive" and the "results were okay".
McCurrie said the South African portfolio had done really well for AB InBev but said it was important to bear in mind that "in the bigger scheme" it was a "very small market" for AB InBev.
Click here for details on AB InBev's shares and other data.
