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Budweiser brewer AB InBev hits Q3 profit forecast, but costs on the rise

Reuters
Budweiser brewer AB InBev hits Q3 profit forecast, but costs on the rise

By Emma Rumney

LONDON, ‌Oct 29 (Reuters) - Top brewer Anheuser-Busch InBev on Thursday posted third-quarter ​profits in ‌line with forecasts, but said rising ‌commodity costs had dragged on its gains in a number ‌of markets.

Consumer goods companies have stepped up their warnings on costs as the war in Iran and its impact ⁠on the global economy drags ‌on, with brewers like ⁠AB InBev, the world's largest by ​global volumes, hit by higher costs for energy, diesel, aluminium and ​more.

The maker of Stella Artois ​and ‌Budweiser said its organic operating profit ​in the quarter was up ⁠3.9%, although its revenues ‌had risen ​more than expected, ​with commodity costs offsetting top-line growth in some countries.

AB InBev flagged higher commodity, distribution and transportation costs in ‌key markets like the United States, Europe and South Africa, where ‌investments ​in sales and marketing also ate into profits. Its margin contracted 34 basis points to 36.1%, it said.

(Reporting by Emma ‌Rumney; Editing by Tom Hogue)