Anheuser-Busch President and CEO, Patrick Stokes annoucned that the company achieved increased sales and earnings for the fourth quarter and full year 2004.
Consolidated net sales increased 4.7% in the fourth quarter, while reported earnings per share increased 16.7%. Net sales and reported earnings per share increased 5.6 percent and 11.7 percent, respectively, for the full year. All major business segments contributed to the sales and profit growth for the year.
As a result of the continuing favorable pricing environment, domestic beer revenue per barrel increased 2.3% in the fourth quarter and grew 2.5% for the full year vs. the same periods in 2003.
Anheuser-Busch completed the first stage of its pricing plan for 2005 in October 2004. The success of these pricing actions is reflected in the company’s fourth quarter revenue per barrel results. As planned, the second phase of the 2005 pricing initiatives is being implemented this week. As in the past, the revenue enhancement initiatives have been tailored to specific markets, brands and packages.
Gross profit margin declined 110 basis points in the fourth quarter 2004, to 34.2%, while operating margin decreased 10 basis points to 13.9%. For the full year 2004, gross margin was down 40 basis points, to 39.9% and operating margin was down 10 basis points vs. 2003, to 22.5%. The declines in margins are primarily due to the impact of higher sales and higher costs from the company’s commodity-based can manufacturing and aluminum recycling operations. Domestic beer gross profit margin decreased 30 basis points for the fourth quarter and increased 20 basis points in the full year.
murdok | Breaking eBusiness News
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