(Bloomberg) — Anheuser-Busch InBev NV, the world’s largest brewer, warned that the second quarter will be much worse than the first three months of the year as April shipments drop 32% due to bars and restaurants closing during the Covid-19 pandemic.Earnings fell 14% on an adjusted basis before interest, taxes, depreciation and amortization in the first quarter. Analysts expected a 15% decline.Key InsightsThe plunge in April shipments compares to a 9.3% drop in the first quarter, illustrating how quickly the situation is deteriorating. The setback is especially acute in Mexico, South Africa and India, where the Budweiser maker has suffered a total halt in production.AB InBev joins rivals Heineken NV and Carlsberg A/S in reporting a collapse in revenue of its brands as the impact of shuttered bars offset any of the gains from the effect of drinkers stocking up at retail outlets. However, for AB InBev the crisis is particularly painful as the company is trying to reduce a pile of debt.For a sense of how drastic the effect of the coronavirus has been, look at Asia: Budweiser Brewing Co. APAC Ltd., AB InBev’s regional subsidiary, posted a loss of $41 million for the March quarter, compared with a profit of $240 million in the same period last year, according to a company filing Thursday.Market ActionAB InBev stock has lost almost half its value this year, heading toward its worst annual performance in decades.Get MoreSee more details.Read the statement. For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
