LONDON (ShareCast) - (ShareCast News) - Anheuser-Busch Inbev's profits fell short of analysts' forecasts for a seventh quarter in a row at the end of 2016, forcing the drinks-maker to implement another round of cost cuts.
The Belgium-based firm reported fourth quarter earnings before interest, taxes, depreciation and amortisation of $5.25bn (consensus: $5.64bn), as weakness in the Brazilian economy continued to take its toll.

Despite the firm promising a better performance in 2017 as revenue growth accelerates, markets pushed the shares down by 2.31% to €101.50 as of 1505 GMT.

In late 2016, it bought rival SABMiller for $103.0bn, leaving it heavily indebted with a net debt/EBITDA ratio of 5.5.

It also revised up its estimate for cost synergies from that aqcuisition over the next three to four years by less than some analysts had anticipated, from $2.45bn to $2.8bn.

As a result of all of the above, Anheuser-Busch InBev decided to pull its boss's and finance chief's yearly bonuses.

It was the first time since 2008 that chief Carlos Brito did not receive one.

Anheuser-Busch Inbev also cut its budget for capital expenditures from $4.8bn in 2016 to $3.7bn.

A final dividend of €2.0 per share was maintained, but Brito cautioned shareholders to only expect modest growth in the pay-out as the company fights to lower its gearing.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE