By Simeon Goldstein

AB InBev has said new packaging and brand extensions have helped boost volumes in certain markets, and is forecasting a solid performance for the rest of the year.

 

The drinks giant recorded a 52% increase in gross profit in the second quarter of 2009, on sales of $9.5bn, much of which is attributable to the acquisition of Anheuser Busch in November. AB InBev reported 8.2% organic profit growth for the three-month period.

 

AB InBev chief executive Carlos Brito said: "Our second-quarter results built off a strong first-quarter performance, despite a more challenging environment characterised by generally weaker demand trends."

 

Western European revenues and volumes fell as subcontracting work decreased significantly and the firm concentrated on its own brands. But the development of the company's Stella Artois brand has increased UK market share despite the overall fall in volumes.

 

Latin America North was the one area where beer and soft drinks volumes grew, which the firm attributed to new packaging and enhanced marketing in the Brazilian market.

 

"The beer industry, while resilient in most of our key markets, is not immune to economic pressures," said Brito.

 

The US packaging division contributed $385m in revenue in the second quarter. AB InBev is selling four packaging plants to Ball Corporation for $577m as part of its divestment programme that followed the Anheuser Busch acquisition.

 

On Monday, Ball announced it was looking to raise $650m by offering senior notes to fund the purchase of the three can plants and one can end facility in the US.

 

AB InBev has also sold its stake in Tsingtao beer for $900m and its South Korean business for 1.8bn.

 

"We have strong operating momentum going into the second half of 2009, but recognise that challenges remain," said Brito. "We continue to be very focused on de-leveraging the company by executing our synergy and cashflow goals, and pursuing a disciplined disposal process."