Anheuser-Busch InBev SA reported its second-quarter earnings on Wednesday. The global beer power managed to beat expectations with its profits, but the cost of its Grupo Model merger and challenges in the beer market weighed heavily as profits fell from the second quarter in 2012. Here are five big takeaways:
1. AB InBev recorded a $1.50 billion ($0.93 per share) profit for the Q2, down from $1.94 billion ($1.21 per share) for the same period in 2012.
2. The Belgium-based company's debt has ballooned, going from $30.1 billion at the end of last year to $43.1 billion at this quarter's close, mostly thanks to financing for the Grupo Modelo deal.
3. Revenue was still up 1.9% over Q2 last year, as U.S. prices rose 3.9% (including hikes during last year's Q4), but U.S. sales volumes slipped 2.8%.
4. Bud Light sales took a 4.7% hit for the quarter, but beer-only revenue was up, and InBev credits that gain to new product launches from the past 12 months, including Bud Light Platinum, Bud Light Lime Lime-A-Rita, Bud Light Lime Straw-Ber-Rita and Budweiser Black Crown.
5. InBev expects to see challenges in Brazil for the rest of the year as consumers there experience pressure on disposable income, though slowing general price inflation and sales boosts during the FIFA Confederations Cup soccer tournament in June may have limited the quarters 0.4% sales volume drop in the country.