With sales of Bud Light and Budweiser down in the U.S., Anheuser-Busch InBev is looking towards its $100 billion-plus mega-merger with global No. 2 brewer SABMiller -- and actors Amy Schumer and Seth Rogen -- to bolster its business.
The Belgium-based beer company, which also has Corona, Stella Artois and Beck's in its portfolio, reported adjusted fourth-quarter net income of $2.56 billion, up slightly from $2.52 billion a year earlier.
Adjusted fourth-quarter earnings of $1.56 per share were down from last year ($1.54 per share) and below analyst estimates of $1.61 (ABI), according to S&P Global Market Intelligence.
Revenue fell 10% to $10.72 billion, falling short of analyst expectations of $11.11 billion. The company reported revenue of $12.02 billion in the same period a year ago.
AB InBev (BUD) shares were down 2.5% in pre-market trading Thursday to $112.70.
Global revenues from its major brands including Budweiser, Stella Artois and Corona rose more than 7% for the year. But increased cost of sales, unfavorable currency translation and the slowing global economy brought earnings down for the year. Adjusted net income of $8.5 billion fell about 4% to $8.9 billion.
Global beer volume sold rose 0.2% in the fourth quarter, the company said, but volume remained flat for 2015. In the U.S., the company expects the Bud Light “Raise One to Right Now” mock political campaign TV commercials starring Schumer and Rogen, which debuted during the Super Bowl, to bring Bud Light "a refreshed visual brand identity," the company said in its financials released Thursday.
Anheuser‐Busch InBev seeks to buy SABMiller for more than $100 billion. and the companies expect to close the transaction in the second half of 2016, AB InBev said in the financial release.
To smooth that merger of the No. 1 and No. 2 global beer makers, AB InBev plans to sell SAB Miller's MillerCoors joint venture. And earlier this month, Japan's Asahi Group placed a $2.87 billion bid for SABMiller's Peroni and Grolsch brands, a move also satisfy European regulators.
Another growth strategy for AB InBev has been the acquisition of craft breweries including Breckenridge (Colo.) Brewery, announced in January, and in 2015, Tempe, Arizona based craft brewer Four Peaks Brewing Co., in Tempe, Ariz., and Golden Road Brewing of L.A. Prior to that, AB acquired Goose Island, Blue Point Brewing, 10 Barrel Brewing and Elysian Brewing.
AB InBev noted that its strongest U.S. sales growth of mid-single digits came from Above Premium brands, which includes its craft beer brands. Goose Island, Stella Artois and Michelob Ultra also delivered double-digit volume growth for the year.
