Anheuser-Busch InBev (ABI.BR) recently reported better-than-expected fourth-quarter earnings and progress on debt reduction, driving an 8% increase in the value of its shares, although sales were hurt by weakness in China.
Premium brands such as Corona and Michelob Ultra helped the company achieve record revenues, while cost management contributed to a 10.1% increase in fourth-quarter earnings, beating forecasts of 7.7%.
The debt reduction allowed AB InBev to approach levels that analysts consider adequate, which could unlock returns for shareholders. Debt, which reached $100 billion following the acquisition of SABMiller in 2015, was reduced to 2.89 times EBITDA.
The company has grown in strategic regions such as the United States, where a boycott of Bud Light affected sales in recent years. Despite a 19% drop in volumes in China, AB InBev expects profit growth between 4% and 8% next year, which generates optimism in the brewing sector.
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