AB InBev: shares plummet after beer giant cuts outlook
(CercleFinance.com) - Shares in Anheuser-Busch InBev tumbled on Friday, reaching their lowest level in almost five months, after the world's biggest beer company cut its full-year profit target.
Earlier this morning, the brewer of Corona and Budweiser beers said that it now expects "moderate" EBITDA growth in 2019, compared to a previous outlook of "strong" EBITDA growth.
The change in company guidance reflected higher costs, currency headwinds, which were exacerbated by softer consumer demand in light of difficult macroeconomic conditions, the group said.
The past quarter was challenging, AB InBev said, which saw its revenue rise by just 2.7% in the third quarter, with flat EBITDA and a contraction in its margin.
The AB InBev share was down 10% in early trading on Friday, reaching its lowest level since last June.
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