Economy

Parent company Corona sells 25 million hectoliters less beer due to virus outbreak

The company is one third dependent on sales in bars, hotels and restaurants. Due to the lockdown in many countries, it largely disappeared in the second quarter.

Much less beer

Calculated in volume, the group sold almost 25 million hectoliters of beer less than a year earlier. Especially in April (-32.4 percent) and May (-21.4 percent), sales fell sharply.

For AB InBev, known for its brands such as Hertog Jan, Leffe, Jupiler and Corona, this resulted in a turnover of 10.3 billion dollars (8.8 billion euros), 18 percent lower than a year earlier. Operating profit fell by 34 percent to $ 3.4 billion.

Africa write-off

A major setback was that the company had to write off $ 2.5 billion on its activities in Africa. The beer company gained a foothold there after an expensive takeover of competitor SABMiller, but will not be able to grow as fast on the continent as it hoped for the corona crisis.

The impairment was partially offset by the $ 1.9 billion proceeds from the sale of the Australian operations.

New restrictions

AB InBev says it has taken important steps to continue investing in its brands and preparing for a strong recovery. Nevertheless, the brewer is still cautious in its optimism, as restrictions in the catering industry can again be seen in certain markets.

For example, in South Africa, the government imposed a ban on the sale of alcohol for the second time. That will have an impact on the third quarter results, according to the brewer.

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