On April 25, beer behemoth Anheuser-Busch (NYSE:BUD) released first-quarter earnings for the period ended March 31.

  • Scanning the numbers below, there's not a whole lot to get excited about. Volume was flat in the U.S., although international volume did increase 8.7%.
  • EPS growth benefited from the company's ongoing share repurchase program.
  • Inside Value recommendation Anheuser-Busch has a three-star rating in Motley Fool CAPS. Boston Beer Co. (NYSE:SAM) carries the same rating.

(Figures in millions, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$3,858.4

$3,755.6

2.7%

Net Profit

$517.5

$499.2

3.7%

EPS

$0.67

$0.64

4.7%

Diluted Shares

773.3

780.2

(0.9%)

Get back to basics with the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

35.9%

35.6%

0.2

Operating Margin

18.6%

19.2%

(0.6)

Net Margin

13.4%

13.3%

0.1

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$274.1

$212.5

29%

Accounts Rec.

$949.1

$873.0

8.7%

Inventory

$802.7

$707.7

13.4%

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$1,279.6

$1,170.9

9.3%

Long-Term Debt

$8,276.2

$8,127.4

1.8%

The balance sheet reflects the company's health.

Cash Flow Highlights

Q1 2007

Q1 2006

Change

Cash From Ops.

$316

$447

(29.3%)

Capital Expenditures

$154.4

$159.1

(3%)

Free Cash Flow

$161.6

$287.9

(43.9%)

Free cash flow is a Fool's best friend.

Related Foolishness:

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