Companies across the food sphere report earnings this time of year, so Food Dive breaks down the latest earnings news all in one place.
AB InBev offsets US decline with Brazil, China
Anheuser-Busch InBev reported a 1.2% drop in sales volume for Q1, due mainly to falling volumes in the U.S., which decreased by 6% due to a surplus for wholesalers last quarter as they built up their stock prior to union negotiations.
Offsetting this decline were price hikes and premium lager sales in other countries, particularly China and Brazil. This includes Budweiser, which saw a 6.2% rise in volume for the quarter.
AB InBev also reported a 7.5% increase in revenue per hectoliter, which the company attributes to revenue management and premiumization initiatives.
Brazil, one of the world's largest markets, is one focus for AB InBev as of late. Part of growth in Brazil was the company's strong pricing in the country as well as incentives to expand operations there, including investments to construct new breweries.
AB InBev also controls a larger share of its distribution chain in the country, as 70% of its sales in Brazil are through internal channels. The company also plans on revenues in Brazil growing by a mid- to high single digit percentage over 2015, particularly driven by sales of premium beers, a strategy that has already done the company well this quarter.
However, it will be tough for AB InBev to top sales year over year after Brazil hosted the World Cup last year. The company also noted that foreign exchange movements could have a negative impact in the future.
SodaStream beats estimates for EPS, though revenue slips
SodaStream International Ltd. shattered experts' predictions of $0.03 for first quarter earnings per share after the company reported an EPS of $0.40, a significant jump from $0.08 for last year's first quarter.
Adjusted revenue was $91.3 million, a 30% decline from $118.2 million in the same period last year.
Adjusted net income came in at $8.4 million over $1.8 million in the first quarter 2014.
SodaStream is still sticking with its plan announced in October that will reposition the company around health and wellness, so 2015 is something of a transition year. SodaStream CEO Daniel Birnbaum said in a press release that the plan includes a new line of sparkling water flavors, which the company has "made good progress on" and which he believes "will resonate strongly with our consumer audience." SodaStream also made an interesting announcement earlier this year when the company said it would be developing a device called the SodaStream Mix which will make carbonated cocktails.