AB InBev shares jump as profits beat expectations

The world's largest brewer AB InBev reported on Wednesday better-than-expected second-quarter results, sending its shares up sharply as it benefited from its acquisition of the Corona beer brand in Mexico. In early trading on the Brussels stock market, AB InBev shares were up some 5.6 percent, leading gainers on the Bel-20 Index. For the three months to June, the company reported an operating profit of $3.9 billion, up 5.8 percent from the same period a year earlier. Analyst forecasts compiled by Dow Jones Newswires put operating profit at $3.8 billion, with this measure seen as most representative of the company's performance. The increase reflected higher margins in the Americas and the Asia-Pacific region, AB InBev said. Second-quarter sales were up 3.9 percent at $10.6 billion, beating analyst estimates for $10.4 billion. Beer sales by volume however were down 1.2 percent. Net profit excluding exceptional items rose to $1.94 billion from $1.5 billion. Including the full acquisition of Mexico's Grupo Modelo for $20 billion, net profit came in at $7.5 billion. AB InBev was formed in 2008 by the merger of Belgian-Brazilian group InBev and US brewing giant Anheuser-Busch and counts some of the world's best selling beers such as Budweiser and Stella.