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Anheuser-Busch Executives Express Confidence In Restoring Growth
May 25, 2005
Reiterate 2005 Earnings Per Share Outlook. Continue to Target Double-Digit EPS Growth Longer-Term.
ST. LOUIS, May 25, 2005 – “With our new product, packaging and marketing programs, we are confident we will be successful in restoring our volume momentum,” Patrick Stokes, president and chief executive officer of Anheuser-Busch Cos., Inc., told investors and analysts today at the company’s 2005 BUD Investor Conference. “Facing challenges is nothing new to Anheuser-Busch and, time after time, we have emerged more profitable with a stronger foundation for future growth. We expect significant improvement in domestic beer sales and profit performance in the second half of this year and continue to target double-digit earnings per share growth over the long-term.”
“To stimulate growth, we have identified four critical marketing priorities,” expanded August Busch IV, president of Anheuser-Busch, Inc. “First, while beer is America’s favorite beverage with 58 percent of overall alcohol servings, we must continue to improve the image and desirability of beer. Second, we must keep beer fun and social. Third, we must grow beer occasions and, fourth, we must continue to improve our retail execution.”
In this context, August Busch IV also highlighted the successful launch of Budweiser Select. Since Budweiser Select’s national introduction in late February, the brand has performed very well, quickly achieving a 1.9 percent share in supermarkets according to IRI scanner data. Budweiser Select has been a key contributor to the improving trend in the company’s overall market share performance that is evident at the retail level.
While the domestic beer company has increased tactical price promotions this year on a specific market, brand and package basis to reduce price premiums versus competition, company executives confirmed that the company’s long-term pricing strategy continues to target increases at or slightly below the consumer price index.
Stephen J. Burrows, chief executive officer and president of Anheuser-Busch International, Inc., highlighted the importance of the international beer segment in contributing to the company’s earnings growth. Since 1999, the international segment has contributed 28 percent of Anheuser-Busch’s consolidated earnings growth, driven primarily by the company’s 50 percent investment in Grupo Modelo in Mexico. Looking to the future, Anheuser-Busch has built an excellent platform for growth in China, the world’s largest and fastest growing beer market. Anheuser-Busch and its partners now account for 45 million barrels of beer volume in China and together have a 19 percent share of the market.
The strategies of Anheuser-Busch’s successful packaging and entertainment businesses, which complement the company’s beer operations and combined totaled over $330 million in pre-tax profits in 2004, were also discussed at the meeting.
“Our earnings outlook for 2005 has not changed,” concluded W. Randolph Baker, vice president and chief financial officer. “We expect earnings per share to grow in the low-single digit percent range this year, excluding one-time gains. 1/ We expect domestic sales-to-wholesalers and earnings per share to decline in the second quarter but forecast sales and earnings growth to resume in the second half of the year as our marketing initiatives gain traction with consumers and year over year comparisons ease. Over the long-term, we expect to achieve our double-digit earnings per share growth objective.”
Other Matters
As previously announced, Anheuser-Busch Companies’ 2005 BUD Investor Conference is being broadcast live over the internet today beginning at 9:30 a.m. Eastern Time. A replay of the webcast will be available on the company’s Web site for approximately one week. For details, visit the company’s site on the Internet at www.anheuser-busch.com.
# # #
NOTES:
This release contains forward-looking statements regarding the company’s expectations concerning its future operations, earnings and prospects. On the date the forward-looking statements are made, the statements represent the company’s expectations, but the company’s expectations concerning its future operations, earnings and prospects may change. The company’s expectations involve risks and uncertainties (both favorable and unfavorable) and are based on many assumptions that the company believes to be reasonable, but such assumptions may ultimately prove to be inaccurate or incomplete, in whole or in part. Accordingly, there can be no assurances that the company’s expectations and the forward-looking statements will be correct. Important factors that could cause actual results to differ (favorably or unfavorably) from the expectations stated in this release include, among others, changes in the pricing environment for the company’s products; changes in U.S. demand for malt beverage products, including as a result of changes in U.S. demand for other alcohol beverages ; changes in consumer preference for the company’s malt beverage products; changes in the cost of marketing the company’s malt beverage products; regulatory or legislative changes, including changes in beer excise taxes at either the federal or state level and changes in income taxes; changes in the litigation to which the company is a party; changes in raw materials prices; changes in packaging materials costs; changes in interest rates; changes in foreign currency exchange rates; unusual weather conditions that could impact beer consumption in the U.S.; changes in attendance and consumer spending patterns for the company’s theme park operations; changes in demand for aluminum beverage containers; changes in the company’s international beer business or in the beer business of the company’s international equity partners; changes in the company’s credit rating resulting from future acquisitions or divestitures; and the effect of stock market conditions on the company’s share repurchase program. Anheuser-Busch disclaims any obligation to update any of these forward-looking statements.
May 25, 2005
Reiterate 2005 Earnings Per Share Outlook. Continue to Target Double-Digit EPS Growth Longer-Term.
ST. LOUIS, May 25, 2005 – “With our new product, packaging and marketing programs, we are confident we will be successful in restoring our volume momentum,” Patrick Stokes, president and chief executive officer of Anheuser-Busch Cos., Inc., told investors and analysts today at the company’s 2005 BUD Investor Conference. “Facing challenges is nothing new to Anheuser-Busch and, time after time, we have emerged more profitable with a stronger foundation for future growth. We expect significant improvement in domestic beer sales and profit performance in the second half of this year and continue to target double-digit earnings per share growth over the long-term.”
“To stimulate growth, we have identified four critical marketing priorities,” expanded August Busch IV, president of Anheuser-Busch, Inc. “First, while beer is America’s favorite beverage with 58 percent of overall alcohol servings, we must continue to improve the image and desirability of beer. Second, we must keep beer fun and social. Third, we must grow beer occasions and, fourth, we must continue to improve our retail execution.”
In this context, August Busch IV also highlighted the successful launch of Budweiser Select. Since Budweiser Select’s national introduction in late February, the brand has performed very well, quickly achieving a 1.9 percent share in supermarkets according to IRI scanner data. Budweiser Select has been a key contributor to the improving trend in the company’s overall market share performance that is evident at the retail level.
While the domestic beer company has increased tactical price promotions this year on a specific market, brand and package basis to reduce price premiums versus competition, company executives confirmed that the company’s long-term pricing strategy continues to target increases at or slightly below the consumer price index.
Stephen J. Burrows, chief executive officer and president of Anheuser-Busch International, Inc., highlighted the importance of the international beer segment in contributing to the company’s earnings growth. Since 1999, the international segment has contributed 28 percent of Anheuser-Busch’s consolidated earnings growth, driven primarily by the company’s 50 percent investment in Grupo Modelo in Mexico. Looking to the future, Anheuser-Busch has built an excellent platform for growth in China, the world’s largest and fastest growing beer market. Anheuser-Busch and its partners now account for 45 million barrels of beer volume in China and together have a 19 percent share of the market.
The strategies of Anheuser-Busch’s successful packaging and entertainment businesses, which complement the company’s beer operations and combined totaled over $330 million in pre-tax profits in 2004, were also discussed at the meeting.
“Our earnings outlook for 2005 has not changed,” concluded W. Randolph Baker, vice president and chief financial officer. “We expect earnings per share to grow in the low-single digit percent range this year, excluding one-time gains. 1/ We expect domestic sales-to-wholesalers and earnings per share to decline in the second quarter but forecast sales and earnings growth to resume in the second half of the year as our marketing initiatives gain traction with consumers and year over year comparisons ease. Over the long-term, we expect to achieve our double-digit earnings per share growth objective.”
Other Matters
As previously announced, Anheuser-Busch Companies’ 2005 BUD Investor Conference is being broadcast live over the internet today beginning at 9:30 a.m. Eastern Time. A replay of the webcast will be available on the company’s Web site for approximately one week. For details, visit the company’s site on the Internet at www.anheuser-busch.com.
# # #
NOTES:
This release contains forward-looking statements regarding the company’s expectations concerning its future operations, earnings and prospects. On the date the forward-looking statements are made, the statements represent the company’s expectations, but the company’s expectations concerning its future operations, earnings and prospects may change. The company’s expectations involve risks and uncertainties (both favorable and unfavorable) and are based on many assumptions that the company believes to be reasonable, but such assumptions may ultimately prove to be inaccurate or incomplete, in whole or in part. Accordingly, there can be no assurances that the company’s expectations and the forward-looking statements will be correct. Important factors that could cause actual results to differ (favorably or unfavorably) from the expectations stated in this release include, among others, changes in the pricing environment for the company’s products; changes in U.S. demand for malt beverage products, including as a result of changes in U.S. demand for other alcohol beverages ; changes in consumer preference for the company’s malt beverage products; changes in the cost of marketing the company’s malt beverage products; regulatory or legislative changes, including changes in beer excise taxes at either the federal or state level and changes in income taxes; changes in the litigation to which the company is a party; changes in raw materials prices; changes in packaging materials costs; changes in interest rates; changes in foreign currency exchange rates; unusual weather conditions that could impact beer consumption in the U.S.; changes in attendance and consumer spending patterns for the company’s theme park operations; changes in demand for aluminum beverage containers; changes in the company’s international beer business or in the beer business of the company’s international equity partners; changes in the company’s credit rating resulting from future acquisitions or divestitures; and the effect of stock market conditions on the company’s share repurchase program. Anheuser-Busch disclaims any obligation to update any of these forward-looking statements.