Business · Companies · 8 hrs ago

AB InBev sets aside $30 million for unpaid Telangana dues

AB InBev sets aside $30 million for unpaid Telangana dues

AB InBev has set aside $30 million against payments it says are overdue from the Telangana government in India.

The company is the world’s largest brewer, and Telangana is one of India’s biggest beer-consuming states by volume.

Telangana owes alcohol companies nearly $400 million, according to the figures cited, as delays put pressure on the industry.

Under the state system, companies supply liquor to government-run depots, making them dependent on the government for payment.

The delays can hurt brewers’ finances, especially alongside restrictions on price increases.

United Breweries, another major brewer, previously paused supplies to Telangana over losses and overdue payments, and says its business there has remained flat.

AB InBev is trying to recover the money and says it does not expect further significant one-off provisions, though circumstances could change.

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What people are saying

Bernardo NovickAB InBev chief financial officer
We decided to recognise this provision of $30 million
via Economic Times
the brewer was making its best efforts to recover the outstanding amount and protect shareholders
via Economic Times
Vivek GuptaUnited Breweries managing director
the company's business in Telangana had remained flat and it had lost some market share as a competitor continued to spend
via Economic Times