AB InBev total beer volume declines by 0.5% in Q1

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AB InBev, the world’s largest brewer said its total revenue for the first quarter of the year rose by 3.7% year on year.

The company also said its total volume for the quarter fell by 0.5%.

Combined revenues of our three global brands, Budweiser, Stella Artois and Corona, grew by 12.1%. Budweiser revenues grew by 7.3%, with 16.4% growth in revenues outside of the US. Stella Artois revenues grew by 21.1%, driven mainly by growth in the US and Argentina. Corona had a solid quarter as well, with revenues growing 18.2%, with 48.2% growth in revenues outside of Mexico, as a result of strong growth in Western Europe and China.

Cost of Sales increased by 5.4% in 1Q17 and by 6.2% on a per hl basis, driven primarily by transactional currency and commodity impacts in Latin America North and Latin America South, as anticipated. On a constant geographic basis, CoS per hl increased by 6.6%.

EBITDA: EBITDA grew by 5.8% as a result of top-line growth, aided by cost synergies and other operating income, partly offset by the CoS pressure. EBITDA margins expanded by 76 bps to 37.2%.