Budweiser maker stumbles, while broader European stock markets rise

The maker of Budweiser stumbled Thursday, as Anheuser-Busch InBev shares dropped as much as 8% after its profit missed analyst expectations.

A-B InBev

reported a surge in second-quarter profit, after the prior-year period was hit by an impairment charge, and as organic revenue jumped 28%. But it also flagged currency swings and commodity cost rises in Mexico, Colombia and Brazil, and it reiterated its 2021 outlook. Its earnings before interest, tax, depreciation and amortization missed expectations once a one-time Brazilian tax credit was excluded, said Citi analyst Simon Hales.

Likewise, Guinness maker Diageo
said negative currency effects, including a stronger pound
will hurt net sales and operating profit in fiscal 2022, though its shares rose 2%.

The Stoxx Europe 600
rose 0.5% to 463.89 as a swathe of European companies reported results. Data showing weaker-than-expected growth in U.S. GDP during the second quarter was largely ignored by traders, as one of the reasons for the miss was the inventories numbers.

Of the major regional indexes, the German DAX
gained 0.4%, the French CAC 40
increased 0.6% and the U.K. FTSE 100
increased 1%.

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