Anheuser-Busch announces record sales, earnings and beer volume for the full year 1994

Business Wire, Feb 7, 1995

ST. LOUIS--(BUSINESS WIRE)--Feb. 7, 1995--Anheuser-Busch Companies, Inc. achieved record sales, earnings and beer volume for the year 1994, it was announced Tuesday by August A. Busch III, Chairman of the Board and President.

It was the company's 18th consecutive year of record sales. The company also reported higher sales and earnings for the Fourth Quarter of 1994 compared to the same period last year.

The record sales and earnings for 1994 were driven by several factors: increased beer sales volume, improved product mix and cost benefits resulting from the Profitability Enhancement Program initiated in 1993.

Increased Beer Sales Volume

Anheuser-Busch beer sales volume increased in 1994 to a record 88.5 million barrels. This represents an increase of 1.4 percent and compares favorably with estimated industry shipment growth (including exports and imports) of nine-tenths (.9) of one percent during 1994. This resulted in an estimated three-tenths (.3) of one percent increase in the Anheuser-Busch domestic market share to 45.0 percent, compared to 44.7 percent last year.

Sales-to-retailers, considered a more accurate measure of underlying consumer demand, increased by 2.8 percent during the year. The growth in sales-to-retailers exceeded the company's reported volume increase primarily because company shipments were reduced to effect a planned reduction in year-end 1994 wholesaler inventories. In 1993, the company built year-end beer inventories in anticipation of national labor negotiations which were successfully concluded in 1994.

Improved Product Mix

During 1994, the company experienced an improvement in sales mix toward its premium beers. The trend was highlighted by the introduction of Bud Ice and the strong performance of Bud Light as the brand became the number one light beer and the second-largest beer brand in the U.S. This mix change toward premium products contributed to more than a 1 percent increase in revenue per barrel in 1994 and positions the company for further profit growth in 1995. Profitability Enhancement Program

The Profitability Enhancement Program, which included significant organizational and operational changes in the company's businesses, resulted in a pre-tax Restructuring Charge of $565 million in 1993. As anticipated, the Program has resulted in approximately $100 million in cost savings in 1994.

In conjunction with Program-related capital expenditures of approximately $1.3 billion in 1994-1998, the Program is expected to generate additional cost savings of approximately $300 million a year by 1998.

Subsidiary Performance

Anheuser-Busch, Inc., the company's brewing subsidiary, reported record sales and earnings during 1994. The improvement in premium beer sales during 1994 was a critical strategic objective of the company. Pricing strategy which narrowed the spread between the premium and popular price categories to encourage "trading-up" was a primary factor in the increased profitability for this subsidiary. Also contributing to the higher profitability were reduced discounting in the marketplace, relatively flat packaging and raw material costs and cost reductions from operating efficiency improvements.

Anheuser-Busch International, the company's international beer subsidiary, increased its earnings by approximately 50 percent during 1994 and was the second largest contributor to consolidated earnings growth.

Busch Entertainment, the company's family entertainment subsidiary, achieved new attendance record ude achieving double-digit earnings per share growth and strengthening Campbell Taggart's performance. The company remains committed to providing direct returns to shareholders in the form of increasing dividends and continuing share repurchases."

FOURTH QUARTER 1994 FINANCIAL RESULTS

Key financial results for the Fourth Quarter of 1994 compared to 1993 are summarized below: -0-

              Fourth Quarter --- $ in millions, except per share
                    1994       1993       1994 vs. 1993
      Gross Sales  $3,350     $3,264          Up 2.7%
      Net Sales    $2,959     $2,854          Up 3.7%
      Operating
       Income      $  337     $  322          Up 4.7%
      Pre-tax
       Income      $  289     $  274          Up 5.6%
      Net Income   $  176     $  167          Up 5.3%
      Fully-diluted
       Earnings
       Per Share   $  .68      $ .62          Up 9.7%