Union de Cervecerias Peruanas Backus y Johnston S.A.

What it is

Backus produces, packages, distributes and sells beers, soft drinks, liquors and mineral water across Peru. Its beer names include Cristal, Pilsen, Cusqueña, Backus Ice, San Juan, Arequipeña, Miller and Peroni; its water trades under San Mateo and the Backus tonic brand.

Backus, belonging to Belgian multinational Anheuser-Busch InBev, dominates more than 90% of the beer market in Peru. It operates through a range of subsidiaries, including Cervecería San Juan, Transportes 77, Naviera Oriente and Club Sporting Cristal.

Who owns it

The company is owned by Racetrack Peru SRL — an AB InBev holding vehicle. In 2016, AB InBev completed its USD 107 billion purchase of SABMiller, transferring Backus under AB InBev’s control; in 2021, Backus then underwent an inverse merger with its majority shareholder Racetrack Perú S.R.L., consolidating ownership.

The exact percentage of Racetrack Peru SRL’s stake in the listed BACKUSI1 investment shares is not disclosed in available sources. A minority of shares remain publicly traded on the BVL, giving the stock its liquidity and its ~6% dividend yield.

Who runs it

Marcio Batista Juliano leads the operation of AB InBev in Peru as President; he holds a degree in Business Administration from the University of São Paulo and an MBA from IBMEC, with more than 25 years of experience inside the AB InBev group. The previous CEO, Sergio Rincón, was promoted within AB InBev in 2022; Juliano previously served as Country Director at Cervecería Nacional Dominicana.

A CFO is not named separately in available primary sources; under Backus’s governance structure, the President and General Manager roles are combined. As of January 2025, a new Legal and Corporate Affairs Director joined from Grupo Modelo (Mexico) to lead legal, regulatory and reputational matters.

The money, in plain words

In fiscal year 2024, Backus recorded total revenue of PEN 7,555M (USD 2,210M, our calculation) and net income of PEN 2,173M (USD 636M, our calculation). That means it kept nearly 29 cents of profit from every sol of sales — a net profit margin of 28.8% (our calculation), exceptional even for a dominant brewer.

Return on equity is 28.2% — for every sol shareholders have invested, the company earns about 28 cents of annual profit, a strong rate by any measure. The trailing price-to-earnings ratio is 9.7×, meaning investors pay under ten times annual profit for each share — modest, reflecting limited growth expectations in a near-monopoly market.

The trailing dividend yield is approximately 6.2%, well above the industry peer average.

What it is doing now

Backus, after holding the San Mateo water bottling business, sold 100% of its shares in that operation to dairy group Grupo Gloria, choosing to focus squarely on its core beer and beverages portfolio. Backus recently completed the San Mateo sale and is now announcing its next steps with its flagship brands heading into 2026, where innovation is a priority.

In late 2024, Backus and sister company Cervecería San Juan filed an international arbitration claim against Peru at the ICSID, contesting a USD 556M tax assessment by Peruvian authorities and alleging discriminatory treatment under bilateral investment treaties. This is the most significant legal overhang investors are watching.

What to watch

• Tax arbitration outcome: a USD 556M claim against the Peruvian state could reshape the company’s cash position — or end in a settlement that sets a precedent for multinationals in Peru.
• Volume recovery: in 2024 the company experienced a fall in volumes sold in the second quarter, hit by weak consumer spending and adverse weather conditions. Sustaining the revenue recovery seen in Q3 2025 (+3.8% year-on-year) is the operating test.
• Portfolio sharpening: the San Mateo exit signals AB InBev is pruning non-core assets; watch for further brand or subsidiary disposals as the parent optimises its Latin American holdings.
• Dividend continuity: the company is paying out more than 100% of its profits, supported by strong cash generation — a policy that pleases income investors but leaves no room for error if profits dip.

This is news, not investment advice.