Anheuser-Busch InBev has released the ‘Reference Base’ for AB InBev for its merger with SABMiller plc.
In an SEC filing, AB InBev said “Given the transformational nature of the combination with SABMiller, we have updated our 2015 and 2016 segment reporting for purposes of results announcements and internal review by senior management.
The company released a presentation for comparative purposes, the results of AB InBev for 4Q15, 1Q16, 2Q16 and 3Q16,” as if the combination with SABMiller had taken place at the beginning of 4Q15″.
For external reporting purposes, AB InBev said it will continue to present its results under the existing six regions. However, with effect from 4Q16, these regions will also include the former SABMiller geographies. Colombia, Peru, Ecuador, Honduras and El Salvador will be reported together with Mexico as Latin America West, Panama will be reported within Latin America North, Africa will be reported together with Europe as EMEA, and Australia, India and Vietnam will be reported within APAC.
This external reporting presentation has no impact on the operational management and organizational structure within AB InBev which was announced on 4 August 2016.
The company said it will have six regions namely:
(i) North America
(ii) Latin America West
(iii) Latin America North
(iv) Latin America South
(vi) Asia Pacific
We will also continue to report the results of Global Export and Holding Companies which include our global headquarters, the export businesses which have not been allocated to the regions, and the interim supply agreement with Constellation Brands, Inc
“Our six geographic regions plus our Global Export and Holding Companies will comprise our seven segments for all financial reporting purposes” the company said.
The Reference Base has been prepared on the following basis:
(i) The Reference Base excludes the results of those business sold since the combination was completed, including the joint venture stakes in MillerCoors and CR Snow, and the sale of the Peroni, Grolsch and Meantime brands and associated businesses in Italy, the Netherlands, the UK and internationally
(ii) The Reference Base excludes the results of the Central and Eastern Europe business and the stake in Distell. Binding sale agreements have been announced for these businesses but the transactions have not yet closed. As per IFRS rules, the results of the Central and Eastern Europe business will be reported as “Results from discontinued operations” until the sale is completed. The results of Distell will be reported as share of results of associates, and accordingly, excluded from normalized EBIT and EBITDA
(iii) Exports to countries in which AB InBev has operations following the combination, were allocated to the respective regions in the Reference Base
(iv) On 21 December 2016, The Coca-Cola Company and AB InBev announced that they had reached agreement regarding the transition of AB InBev’s 54.5% equity stake in Coca-Cola Beverages Africa (“CCBA”). For the purposes of the Reference Base, the results of CCBA are included in “EMEA” and will continue to be reported within that region throughout AB InBev’s ownership of its stake in CCBA.
AB InBev has a stake in International Breweries Nigeria through its SAB Miller’s investment in the eastern region-based brewer.