Beer-maker AB InBev posts quarterly sales fall

The world’s leading brewer, AB InBev, said Tuesday its first quarter net profit rose but sales disappointed after a weak performance in the US and Brazil.

The company, famous for its Budweiser brand, said net profit rose 22.7 percent in the January to March period to $2.05 billion from $1.67 billion a year before.

But first quarter sales fell 1.75 percent to $9.17 billion, weaker than the $9.64 billion forecast by analysts surveyed by Dow Jones Newswires.

Sales in North America, a major market, fell by 5 percent, the company said.

After the results announcement, shares in AB InBev lost 2.71 percent in early trading to 71.12 euros.

In June, AB InBev is set to complete a merger with Mexico’s Grupo Modelo, maker of Corona, of which it already owns fifty percent.

Earlier this month, the US Department of Justice said it had approved the merger following a settlement that resolves anti-competitiveness concerns.

Under the proposed settlement, the companies must divest Modelo’s entire US business, including the licenses of Corona beer and other beer products, to Constellation Brands.