The world's largest brewery, Anheuser-Busch InBev which is popular for Budweiser, Stella Artois and Corona brand of beers has pulled out of its 2020 outlook amid the massive surge in the number of people infected with novel coronavirus COVID-19 globally. The pandemic has brought the world to a standstill, with many countries going into strict lockdowns.
The Belgium based beer makers had initially forecast at the end of February that core profit (EBITDA) would decline by 10% in the first quarter and by between 2-5% for the full year. AB InBev's forecast happened at a time when coronavirus was largely restricted to China, with relatively fewer cases in other parts of the world.
"Since 27 February 2020, the scale and magnitude of COVID-19 has increased significantly, resulting in restrictions imposed on many customers, as well as other limitations and social distancing measures in many countries in mid-March," the company said in a statement as reported by international media.
"Given the uncertainty, volatility and fast-moving developments of the pandemic in the markets in which AB InBev operates, the company is withdrawing that 2020 outlook in its entirety because of the impact of COVID-19," the statement added.
(Image source - AP)