Question

Why is Anheuser Busch InBev's Gross Profit Margin and Operating Profit Margin so much higher than that of it's competitors? Is it a different approach to classifying expenses? If yes, what do they do differently?

See financial tables below

Gross Profit Margin

	AB InBev	Heineken	Kirin	Molson Coors
2013	59.3	36.5	42.9	39.84
2014	60.1	37.4	43	39.87
2015	60.7	37	44.1	40.25
2016	60.9	37.5	44.2	38.84
2017	62	37.9	42.5	43.49

Operating Profit Margin

	AB InBev	Heineken	Kirin	Molson Coors
2013	32.7	12.12	6.3	11.1
2014	32.44	13.95	5.2	11.8
2015	31.78	12.99	5.7	11.15
2016	28.93	13.03	11.32	6.3
2017	31.17	14.8	10.6	15.93

Answer 1

For giving a brief overview, Anheuser Busch InBev's comes under the industry category of consumer staple and usually consumer staple companies usually have a higher sales leading to a consistent margin as the demand for staples is usually high and consistent.

Also by opting for lower-priced suppliers, and using labor-saving technology the cost of goods sold could come down, the company has used low-cost packaging alternative of 630-milliliter and 1-liter returnable glass bottles gives the company a competitive advantage over its other industry players in terms of managing the cost which could lead to a higher profit margin.

In terms of accounting methodology Operating Margin can be manipulated by adjusting the rate of depreciation, and amortization