Belgium: InBev Chief Executive Officer John Brock announced on Tuesday, January 25, he was confident the brewer would achieve a 30% profit margin by the end of 2007. Speaking at the opening of the company's new corporate headquarters in Belgium, Brock said the group's new strategy was centred on 'capturing over the next three years far more than our fair share of the incremental global EBITDA, which translates into a 30 pct profit margin'.

Brock has often said he wants InBev to cut costs and become as efficient as U.S. rival Anheuser-Busch, which has a margin on earnings before interest, tax, depreciation and amortization (EBITDA) of some 28%. "(We want to capture) over the next three years far more than our fair share of the incremental global EBITDA ... which translates into a 30% profit margin," Brock said.

"That is why achieving our mission ... is key to maintaining superior, sustainable and profitable growth," Brock added at the opening of a new headquarters for the world's largest brewer in its home town of Leuven, about 20 miles east of Brussels. The CEO also said he expected the company to meet its 2005 volume sales target of a growth rate of two to three times the industry average.

InBev sold less beer than expected in 2004. Underlying volume sales excluding acquisitions rose 3.3 percent, below its target of 4 to 5 percent.

The company had to rely on recently acquired AmBev of Brazil to boost its total volume sales higher. InBev plans to launch its flagship Brazilian beer, Brahma, in Europe and North America "in the next few months," Brock added.

He dampened speculation that InBev might buy Colombian brewer Bavaria, which has been reported to be the subject of a $9 billion bid, though he confirmed InBev was open to acquisitions in Russia, China and Latin America. "It is my understanding that other people appear to be more interested," he said.

26 January, 2005