AB InBev sees flat year for beer in 2010

PARIS: The world's largest brewer and maker of Budweiser said Wednesday its first quarter profit fell 34 per cent to $475 million as global beer sales remained stagnant and were not forecast to rebound in 2010.

Anheuser-Busch InBev SA made a $716 million profit a year earlier. It sold 0.8 percent more beer and soft drinks in the first quarter and said an expected improvement in profitability would be delayed until the second half due to lower expected sales and marketing expenses.

In a statement, AB InBev also warned its second quarter earnings would be hit by higher one-off financing costs stemming from a refinancing and bond issue in the first quarter.

``We now expect second quarter 2010 volume growth more in line with first quarter levels,'' the company said, while earnings before interest, tax, depreciation and amortization, or EBITDA, growth will be lower, ``largely due to the timing of sales and marketing investments.''

In the United States, the company's biggest market, beer volume sales were down 6.8 percent _ even though revenues grew 1.6 percent. Volumes were also down by 14.4 percent in Russia and 1.2 percent in western Europe, but rose 5.1 percent in China.

Revenues in the first quarter were $8.33 billion, up 1.9 percent from $8.2 billion in 2009's first quarter.