AB InBev warns on US and Brazil beer sales Anheuser-Busch InBev, the world's largest brewer by sales, reported strong profits in the last three months of 2012 but warned that revenues in the first part of this year could be hit by lower beer volumes in key markets such as the US and Brazil. The Belgian group behind the Budweiser, Stella Artois and Becks labels said on Wednesday that pressure on US consumers" disposable income, an earlier than usual carnival festival in Brazil this year as well as tough weather in both countries would hit volumes. The brewer, which offered to offload assets and licences in an attempt to win regulatory approval for its $20bn takeover of Mexico's Grupo Modelo, said that it was still awaiting regulatory approval for the deal. The US Department of Justice had initially blocked the takeover on antitrust grounds. Slower business activity in the US and Brazil, where AB InBev makes more than 60 per cent of its revenues, are expected to be partially offset by a return to solid volume growth in China in 2013 after a disastrous last quarter of 2012 in Asia's largest economy. Volumes in China dropped 12 per cent at the end of last year because of extreme weather conditions. The company said: "While we expect 2013 to be another year of challenge and uncertainty in the global economic environment, we will continue to work for the long-term growth of our business and shareholder value." The conservative outlook is in sharp contrast with the group's robust performance in the quarter ending on December 31. The Leuven-based brewer said that in the fourth quarter of 2012, earnings before interest, tax, amortisation and depreciation rose 10 per cent to $4.39bn compared with the same period a year earlier. The strong quarterly result was also reflected in the Brussels-listed group's 2012 annual results, in which ebitda rose 8.5 per cent to $12.77bn compared with $12.61bn in 2012, driven by strong sales in the US and Brazil, which offset a drastic fall in sales in central Europe. Carlos Brito, AB InBev chief executive, said: "2012 was an important turning point after three years of very soft markets." Although AB InBev's market in the US remained unchanged, its beer-only revenues per hectolitre grew 4.9 per cent in 2012 thanks to the successful introduction into the market of Bud Light Platinum and Bud Light Lime-A-Rita, a margarita drink. In Brazil, beer revenue per hectolitre grew 9.6 per cent in 2012, including 10.9 per cent in the last quarter, as Budweiser became the largest consumed international beer in the country despite an increase in prices that did not impact sales. Meanwhile, beer volumes in China in 2012 rose 1.9 per cent. The only markets to suffer sharp falls were western and central Europe, where beer sales per hectolitre fell 4.2 per cent and 11.3 per cent respectively, as demand was affected by a tough competitive environment. Anthony Bucalo, an analyst at Santander, said: "The company closed out 2012 well in its key North American and Latin America North markets and we think this will be taken as a positive." AB InBev shares fell 0.6 per cent to €69.37 in morning Brussels trading.