Dramatic drop in AB InBev share price

"Over 11% wiped off company value in one day Financial news sources have reported that AB InBev’s share price took a steep dip on Friday 25th October, plummeting by 11.1% of its total value. The…"

Over 11% wiped off company value in one day

Financial news sources have reported that AB InBev’s share price took a steep dip on Friday 25th October, plummeting by 11.1% of its total value. The collapse comes after the release of third-quarter earnings figures, beset by difficulties in the Asian beer market, and China in particular.

From €82.84 per share at close of trading on Thursday 25th, the price tumbled to €74.26 just after trading opened on Friday morning. The value has continued to trickle downwards in the days since, sitting at €72.19 at time of writing.

Image source: Google Finance

AB InBev has been desperate to cut its debts recently, the normally acquisitive multinational selling off subsidiaries, including Australian giant Carlton & United.

The reduction in earnings comes in parallel with a small increase in production volumes, indicating that the pricing of flagship brands such as Budweiser, Brahma and Stella Artois may be a major part of the problem. This makes it likely that more profitable craft brands may be acquired or developed in the near future. Even still, financial commentators are reluctant to suggest a means by which the world’s largest brewer can return to sustainable growth.

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