ABInBev: shares tumble on dividend cut, disappointing volume
(CercleFinance.com) - Anheuser-Busch InBev shares have fallen by up to 10% on Thursday after the world's largest brewer said that it plans to pay a dividend that is 50% lower, reporting disappointing volume performance for the third quarter.
In a statement this morning, ABInBev said that it would pay a dividend of 0.80 euro per share for fiscal year 2018, a "rebase" that is intended to "accelerate deleveraging" and "prioritize investment."
The brewer said that revenue grew by 4.5% in the July-to-September period, with total volumes up 0.2% in the quarter, with beer volumes up 0.5%.
Third-quarter core profit (EBITDA) was up just 7.5%, at 5.7 billion euros, compared with the consensus' forecast of +9.9%.
"ABInBev delivered a weaker than expected third-quarter with particularly disappointing volume performance," UBS analysts said.
The shares are currently down 8% at 66.5 euros on Euronext Brussels.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
In a statement this morning, ABInBev said that it would pay a dividend of 0.80 euro per share for fiscal year 2018, a "rebase" that is intended to "accelerate deleveraging" and "prioritize investment."
The brewer said that revenue grew by 4.5% in the July-to-September period, with total volumes up 0.2% in the quarter, with beer volumes up 0.5%.
Third-quarter core profit (EBITDA) was up just 7.5%, at 5.7 billion euros, compared with the consensus' forecast of +9.9%.
"ABInBev delivered a weaker than expected third-quarter with particularly disappointing volume performance," UBS analysts said.
The shares are currently down 8% at 66.5 euros on Euronext Brussels.
Copyright (c) 2018 CercleFinance.com. All rights reserved.