Anheuser-Busch InBev, the largest brewery in the world, reported better-than-anticipated revenue during the first quarter, despite experiencing decreased sales in both the US and China. The company’s revenue increased by 2.6% to reach $14.5 billion, surpassing predictions made by financial analysts polled by FactSet, who estimated $14.3 billion. This positive outcome was achieved despite a decline in volumes, which amounted to -0.6% for the quarter. Whilst beer volumes dropped at a rate of -1.3%, non-beer product volumes rose by 3.5%.
The US market has proved challenging for the business, with revenue falling by 9% during the initial three months of 2024. Sales in North America decreased by 10% during the same time frame. This adverse performance may be attributed to the controversy surrounding Bud Light, the company’s former bestselling product in the US. In spring 2023, conservative backlash occurred following Bud Light’s distribution of a commemorative can to transgender influencer Dylan Mulvaney. Consumers believed that Bud Light wasn’t doing enough to support Mulvaney’s cause, resulting in a reduction in sales.
Michel Doukeris, CEO of Anheuser-Busch InBev, stated during a conference call with investors on Wednesday that beer volumes in the US improved towards the end of 2023. Furthermore, the company is witnessing substantial market share gains for some of its other brands, such as Michelob Ultra and Busch Light, in the US. Doukeris also highlighted that Michelob Ultra would receive additional marketing support throughout the upcoming Olympics. In January, the US Olympic and Paralympic Committee disclosed that Michelob Ultra would be the exclusive beer sponsor for Team USA during this summer’s Olympics and the official beer sponsor of the 2028 Olympic Games in Los Angeles. “We will be laser-focused on doing what we do best. Our brands will show up in a big way,” Doukeris explained during the investor meeting.
AB InBev also announced a deal with the International Olympic Committee in January, making it the primary beer sponsor for the Olympics in the last 40 years. Corona Cero, the zero-alcohol version of the Corona brand, will be the principal focus of the worldwide partnership.
Doukeris elaborated that unfavourable weather conditions impeded sales in China during the first quarter. Nevertheless, he affirmed that the long-term trend toward premiumisation in China augurs favourably for Anheuser-Busch InBev’s brands. Revenue increased in other crucial territories during the quarter, such as Europe, Mexico, Brazil, and Colombia.
Excluding unique expenditures, net income advanced 15% to $1.5 billion, or 75 cents per share, during the quarter. This exceeded analysts’ projections for a 65 cents per share profit. AB InBev shares rose by more than 4% in early trading on Wednesday on the New York Stock Exchange.
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