AB InBev Volume Drops Less Than Expected Despite Bud Light Controversy — Update

By Michael Susin

Anheuser-Busch InBev volumes dropped by less than expected in the first quarter, and backed its guidance after saying that the three-month performance was encouraging.

The world's largest brewer--which houses the Stella Artois and Budweiser brands among its portfolio--on Wednesday said volumes for the quarter decreased 0.6%, compared with the company-provided market expectations of a 1.0% drop, based on an estimate from 17 brokers published on April 15. On the previous quarter, volumes were down 2.6%.

The fall was mainly driven by the United States, which saw organic volumes drop 9.9% due to the impact of Bud Light sales to retailers.

Sales in the region have been struggling since April 2023, when Dylan Mulvaney, a transgender social-media star, made a post about a personalized can of Bud Light that the brewer had sent her as a gift. The post sparked a boycott that caused sales of Bud Light, and other brands, to fall.

However, revenue in the region decreased 9.1%, compared with an Visible Alpha consensus of a 12% decrease.

Net profit for the quarter was $1.09 billion from $1.64 billion a year earlier. This compares with market expectations of $1.17 billion, according to Visible Alpha consensus based on 15 analysts' estimates. The worse-than-expected drop was driven by non-underlying finance costs and the impact of hyperinflation.

Excluding these factors on an adjusted basis, net profit rose to $1.51 billion from $1.31 billion.

Revenue for the quarter rose to $14.55 billion from $14.21 billion a year earlier.

The company reported organic revenue growth of 2.6%, in line with the company-compiled market consensus.

Normalized earnings before interest, tax, depreciation and amortization rose by 5.4% to $4.99 billion, compared with market expectations of a 1.9% growth.

Looking ahead, AB InBev said it expects 2024 earnings before interest, taxes, depreciation and amortization to grow in line with the term outlook of between 4% and 8%.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

May 08, 2024 02:13 ET (06:13 GMT)

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