News briefs: Anheuser Busch, InBev, Dr Pepper Snapple
Boom-time for Busch
August Busch IV will receive a boon of around US$10.4m on completion of the planned sale of Anheuser-Busch to old rival InBev, a company filing has revealed.
The sale agreement was struck in July, and a price tag of $52bn affixed to A-B. The transaction is expected to close by the end of the year, but regulatory approval is still pending.
In addition, the A-B CEO would be eligible to receive an additional $13.3 million through control payments and benefits related to the merger. He is expected to stay on with the merged firm in the role of consultant, for which he will tap a fee of $120,000 a month.
InBev far from satisfied
Belgium’s InBev has said its operational performance has improved in line with expectations in Q2 – but is “far from satisfied” with its performance year to date.
Total volume growth was up slightly from 68,168m Hl to 68,425m Hl. However revenue was €3710m, compared to €3720 for the same period of 2007, and gross profit €2157m, compared to €2183m.
Nonetheless, these results were said to be in-line with predictions aired three months ago, when the Q1 results were announced.
Improvements include better results from Brazil and Russia, two key markets that had shown a weak start to the year. Growth was also seen in Latin America, North America and Asia Pacific, but Western European volumes were down 1.4 per cent.
The firm is focusing on cost prioritisation and efficiencies, and managed to claw savings of 11.3 per cent in overheads. This freed up some funds for a 6.9 per cent increase in sales and marketing expenses.
Dr Pepper Snapple
Dr Pepper Snapple’s Q2 results carried costs relating to its split off from Cadbury on May 7. However when restructuring, transaction and separation costs are taken out, earnings for the quarter were up seven per cent to $0.60 per share on the prior year period.
Net sales were up from $1,543m to $1,557m – around one per cent “as higher pricing more than offset sales volume declines”.
President and CEO Larry Young said: “Higher prices at the gas pump and at retailers across the country have impacted our customers and their shopping habits.”
With respect to the separation from Cadbury, Young said the corporate teams have been working “tirelessly” to establish stand-alone financial statements. “There’s still a lot left to do, but I am immensely proud of the progress we have made”.
