After merger, A-B InBev hurt by struggles in emerging markets

In just more than two years since it acquired rival SABMiller in October 2016, Anheuser-Busch InBev has seen its share price drop by about 40 percent. Last month, the brewer announced plans to cut its dividend after underwhelming quarterly earnings.

A-B InBev, which has its North American headquarters in St. Louis, has delivered promised cost savings since its 2016 deal for SABMiller, and the brewer maintains healthy profit margins. But it has struggled to grow sales volume.

The merger was driven in part by A-B InBev anticipating growth in emerging markets in Africa, South America and Asia. But demand in those markets hasn’t materialized, dampened in some cases by factors beyond the company’s control.

Read more: St. Louis Post-Dispatch

Tags:, ,

Leave a Reply

Have you heard?

Missouri Business Alert is participating in CoMoGives2019!

Find out how we plan to use your gift to enhance training and programming for our students