Drink giants AB InBev, Pernod Ricard warn on sales plunge
The world's largest brewer AB InBev has scrapped its 2020 outlook as the scale of the coronavirus crisis has increased.
The Belgium-based maker of Budweiser, Stella Artois and Corona had forecast at the end of February that core profit would fall by 10% in the first quarter.
At the time, the coronavirus crisis was largely confined to China.
But as the scale of COVID-19 has increased, so too have the restrictions imposed on many customers, including social distancing measures in scores of countries and the closure of bars and restaurants.
It's not the only drinks group under pressure.
French spirits maker Pernod Ricard also warned on Tuesday of a hit of around 20% to its current operating profit.
Pernod is the biggest international spirits maker in China, and the world's second-biggest behind Diageo.
It had already cut its full-year outlook, but says it is in a solid financial position to be able to cope with the impact of the outbreak - with 3.7 billion dollars available in credit lines.
