AB InBev sets aside $30 million for unpaid Telangana dues
The brewer has made a provision for outstanding payments from the Telangana government amid industry concerns over nearly $400 million in owed dues.
Anheuser-Busch InBev has set aside $30 million to account for outstanding payments from the Telangana government, according to The Economic Times.
The company's chief financial officer, Bernardo Novick, stated during an earnings call that while total receivables from the state remained relatively stable during the year, some payments had been outstanding for an extended period.
Novick said the company decided to recognise the $30 million provision and is making efforts to recover the amount to protect shareholders. He added that the company does not expect further meaningful one-off provisions, though circumstances could change.
The disclosure comes as industry groups have accused the Telangana government of breaching accounting rules over nearly $400 million owed to alcohol companies. Under the state's system, manufacturers supply products to government-run depots for distribution.
United Breweries, which controls about half of India's beer market, previously halted supplies to Telangana Beverages Corporation about a year ago. The brewer cited operating losses and overdue payments, stating that selling beer at a loss made operations unsustainable.
United Breweries managing director Vivek Gupta said last week that the company's business in Telangana has remained flat and it has lost some market share as a competitor continued to spend.