PREVIEW-AB InBev Q3 profit growth seen slowing
* Q3 beer volumes seen down 3 percent
* Core profit growth slowing
* Results due Thursday at 0600 GMT
BRUSSELS, Nov 10 (Reuters) - Anheuser-Busch InBev (ABI.BR) is braced to report a decline in consumption of its beers such as Budweiser, Stella Artois and Beck's on Thursday, weighing on profits in the first half. [ID:nL9286279]
The world's largest brewer is expected to have suffered a 3 percent decline in beer volumes, according to a Reuters survey of 16 banks and brokerages, partly due to sluggish European markets and partly because U.S. volumes grew strongly a year ago due to the launch of Bud Light Lime. [ID:nL9286279]
World number two SABMiller (SAB.L) reported a 1 percent decline in volumes for its half year to end September, Heinken's (HEIN.AS) volumes were down 4.7 percent on a like-for-like basis in the third quarter, while Carlsberg's (CARLb.CO) were off 5 percent.
For AB InBev, higher prices should partly compensate for slowing sales, notably in the United States where rival MillerCoors said pricing was strong, and the company's tight cost control should lead to an improvement in the core profit margin. [ID:nN0430497]
Earnings before interest, tax, depreciation and amortisation (EBITDA) are forecast at $3.52 billion, down 1 percent from the figure reported a year ago, but up some 7 percent on a like-for-like basis.
AB InBev said in August it expected a solid second half but like-for-like EBITDA growth would be significantly below the 21.8 percent achieved in the first half.
It said the third quarter would be especially challenging due to more difficult comparisons and higher sales and marketing expenses. The slowing of market demand seen in the second quarter would continue into the third.
A reduced growth of sales costs would help, but synergy savings from acquired Anheuser-Busch business in the United States would be lower than in the first half.
InBev bought its U.S. rival for $52 billion last year and has targeted $2.25 billion in synergy savings in three years.
A year ago, shares of the new AB InBev sank to a five-year low of 9.96 euros as it launched a $9.8 billion rights issue and investors expressed concern over its heavy debt.
However, the company has since raised a potential $9.5 billion from asset sales, has issued nearly $20 billion in bonds and its shares have more than tripled. (Editing by David Holmes)
