Belgium: Shares in InBev fell 5.2 % after the world's biggest brewer by volume told analysts it expected lower earnings per share this year after unveiling a surge in profit for last year, when the maker of Stella Artois and Beck's beers acquired Brazil's AmBev, according to Reuters revealed on March 2.

InBev announced on March 3 that during the presentation of InBev's 2004 results on March 2nd, several factors were highlighted, which will have a negative effect on EBIT, and which have previously been disclosed to investors. InBev said that significantly none of these factors will affect operational performance, but it is expected they will have an impact on InBev's 2005 Earnings per Share. In order to more fully respond to questions from analysts and investors, InBev wishes to provide the following additional clarifications concerning these factors:

- Average outstanding financial debt is expected to increase, following the earlier announced acquisitions in China, Germany and Eastern Europe; that combined with higher interest rates, will likely reduce EPS by 5-7%;
- While InBev will not speculate on the outcome of the MTO, a 100% take-up in shares would result in EPS dilution of 4-5%, while a 100% selection of cash, would be broadly neutral;
- As mentioned in the Board Report, the total contribution to InBev, brought about by the unwinding of the FEMSA relationship, will be reduced by about 80 million euro*; Approximately 35 million out of the 80 will impact the above-EBIT line, and this will be offset by the synergies and operational improvements of our US business.
- InBev expects solid organic growth in 2005, based upon its strategy of top line growth and strong cost management. Nevertheless, it is unlikely that 2005 EPS will be as high as normalized 2004 EPS.

InBev is a publicly traded company based in Leuven, Belgium. The company's origins date back to 1366, and today it is the leading global brewer by volume. InBev’s strategy is to strengthen its local platforms by building significant positions in the world's major beer markets through organic growth, world-class efficiency, targeted acquisitions, and by putting consumers first. InBev has a portfolio of more than 200 brands, including Stella Artois®, Brahma®, Beck’s®, Skol®—the third-largest selling beer brand in the world—Leffe®, Hoegaarden®, Staropramen® and Bass®. InBev employs some 77,000 people, running operations in over 30 countries across the Americas, Europe and Asia Pacific. In 2004, InBev realized a net turnover of 8.57 billion euro (including four months of AmBev).

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .