Anheuser-Busch’s Profit Falls 39.5% on Price Cuts
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Anheuser-Busch Cos., the nation’s biggest brewer, said its fourth-quarter profit plunged 39.5% from the previous year after price cuts failed to boost sales.
The St. Louis-based maker of Budweiser, Bud Light and other beers said it earned $201 million, or 26 cents a share, for the period ended Dec. 31, down from $332 million, or 42 cents, a year earlier.
Sales were flat in the final quarter of last year, with gross revenue rising to $3.882 billion from $3.88 billion the previous year.
In the wake of those lackluster results, the company plans to boost profit by raising prices. Chief Financial Officer Randolph Baker said price increases started in selected markets this month, with a jump of 2% to 3% to be initiated nationwide by year’s end.
Shares of Anheuser-Busch fell 4 cents to $41.40.
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