AB InBev aims for core profit growth of 4% to 8% medium term

Anheuser-Busch InBev’s new leadership on Monday set a core profit growth target for the world’s largest brewer of 4% to 8% over the medium term.

The maker of beers Budweiser, Stella Artois and Corona, headed since July 1 by Michel Doukeris, will host an investor seminar on Monday.

In the 10-year period 2010-2019, AB InBev’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased by an average 7.3%, then fell 2.4% in pandemic-hit 2020.

The Belgium-based company is forecasting 10-12% expansion this year.

Its target for “organic” EBITDA growth removes the impact of currency changes on translation of foreign operations and of acquisitions and divestments.

Doukeris, AB InBev’s former head of sales and of its North America business, replaced fellow Brazilian Carlos Brito who built the brewer into the world’s largest during 15 years at the helm.

Brito steered growth through acquisitions and cost savings. His successor is likely to focus more on boosting sales of over 500 brands in an already concentrated beer market.