By Philip Blenkinsop and Mette Fraende
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AB InBev, the world's biggest brewer and maker of Budweiser, Stella Artois and Beck's persuaded increasingly affluent Brazilians to drink higher priced beer and U.S. drinkers to stick with or shift to premium brands despite an economic slowdown.
By contrast, Carlsberg, the world No. 4 and producer of Baltika and Tuborg, suffered a double whammy in Russia of lower volumes and higher costs, but maintained its full-year profit outlook, against some expectations of a downgrade, sending its battered shares sharply higher.
The Belgium-based AB InBev said on Wednesday third-quarter core profit (earnings before interest, tax, depreciation and amortization) rose 5.5 percent on a like-for-like basis to $3.97 billion, against a market expectation of $3.88 billion.
Total volumes of beer and other drinks fell by 0.2 percent on a like-for-like basis, but revenue grew by 3.6 percent.
The brewer said it expected volumes to gain momentum in the fourth quarter, particularly because of relatively weak year-earlier levels in Brazil, with increases in global commodity costs mitigated by forward hedging.
At the Copenhagen-based brewer, third-quarter operating profit fell by 21 percent, steeper than expected, hurt by tax-driven price hikes that shrank the Russian beer market by 7 percent and more costly barley imports enforced by last year's poor harvest there.
The year-on-year comparison was made even worse because Russia -- Carlsberg's biggest market accounting for 40 percent of group profits -- was hit by a heat wave in summer 2010, the cause of the poor harvest but a firm boost for beer consumption.
Russia is set to raise duty on beer again in 2012. Carlsberg said it was increasing prices this month and expected wholesalers and distributors to build stocks in the final quarter.
Carlsberg shares were up 4.3 percent at 0945 GMT, AB InBev's 1.2 percent higher. The STOXX 600 European food and beverage index <.SX3P> was 0.4 percent weaker.
The world's top four brewers -- including also SABMiller
In October, Heineken reported a surprise increase in volumes and revenues, helped by a rebound in Russia and stronger African markets.
The same month, SABMiller, which reports full first-half results on November 17, said beer volumes were up 3 percent in the six months to the end of September, driven by Latin America, but below expectations due to poor performances in Europe and China.
(Writing by Philip Blenkinsop; Editing by Jon Loades-Carter and David Jones)