AB InBev profit meets forecast as costs climb

Key facts

• Third-quarter organic operating profit rose 3.9%.
• Margin contracted 34 basis points to 36.1%.
• Rising commodity, distribution, and transportation costs impacted profits.

Anheuser-Busch InBev, the world's largest brewer by global volumes, reported on Thursday that its third-quarter profits met forecasts. However, the company flagged rising commodity costs for energy, diesel, and aluminum, which have impacted its gains in several markets. Despite higher revenues, these increased expenses offset top-line growth in some countries. AB InBev also noted higher distribution and transportation costs in key markets such as the United States, Europe, and South Africa, alongside investments in sales and marketing that ate into profits. The company's margin contracted by 34 basis points to 36.1%.