Interbrew sticks to targets despite profit slide

Belgian beer giant Interbrew stuck by its full-year targets today despite posting a slide in profits.

Interbrew – home to Stella Artois and Beck’s – saw volumes in the nine months to September 30 fall 2.5% and earnings before interest and tax by 15.1%.

But the yearly decline was largely attributed to the sale of Carling Brewers, to US giant Coors for €1.9bn, and restructuring charges.

Stripping out that, volumes rose 16.8% while earnings before interest and tax jumped 16.5% to €650m.

And looking forward, the group remained confident for the year as a whole, commenting: “Barring unforeseen circumstances, Interbrew is on track to meet its objectives.”

Capital expenditure is likely to be about €500m, while earnings per share is forecast to be €1.50, a 19% increase.

In Western Europe, organic volume growth was 3% in the first nine months of the year with Stella Artois in the UK and Beck’s in Germany performing particularly well.

However, Interbrew said the beer market as a whole was impacted by the wet summer.

In the US, the market continued to be robust with Stella Artois, Tecate, Rolling Rock and Beck’s showing strong growth.

Emerging markets, however, suffered from stiff competition in Bulgaria and weak currencies in Eastern Europe.

Interbrew first struck a deal to buy Bass Brewers from the now renamed Six Continents in 2000.

The deal was blocked on competition grounds, however, until Interbrew finally had the decision reversed by the High Court last year.

It ruled the Belgian group could keep Bass Brewers as long as it sold the Carling Brewers arm.

The group has retained breweries in Glasgow and Belfast and the Tennent’s and Bass Ale brands.