InBev Reports Stronger-Than-Expected Revenue Amidst Decline in Sales in US and China

Anheuser-Busch InBev, the largest brewery in the world, reported better-than-anticipated revenue in the first quarter despite decreases in sales in both the US and China. The company’s earnings reached $14.5 billion, exceeding projections made by financial experts at FactSet, who predicted a figure of $14.3 billion. Although total volumes fell 0.6% during the quarter, the number of non-beverage products such as Cutwater and Nutrl spirits increased by 3.5%. However, the brewery experienced considerable difficulties in the US, where revenues fell by 9% during the same time frame. North American beer volumes decreased by 10% during the quarter. The controversy surrounding Bud Light, the company’s most popular beer in the US, contributed significantly to these results. Customers abandoned the product following a backlash against the brand’s promotion of transgender activist Dylan Mulvaney, which many perceived as insufficient. Despite this, the brewery reported an improvement in US beer volumes from the end of last year, and it saw significant market share gains for some of its other brands, including Michelob Ultra and Busch Light. Doukeris, InBev’s CEO, stated that Michelob Ultra would receive additional advertising during the upcoming Summer Olympics. In January, the United States Olympic and Paralympic Committee declared that Michelob Ultra would serve as the exclusive beer supplier for Team USA during this summer’s Olympics and would be the official beer sponsor of the 2028 Olympic Games in Los Angeles. Furthermore, in January, InBev announced a deal with the International Olympic Committee, making it the first beer brand to sponsor the Olympics in the past four decades. Corona Cero, the alcohol-free version of Corona, will be the focal point of the worldwide sponsorship campaign. In addition, excluding exceptional items, net income climbed by 15% to $1.5 billion, or $0.75 per share, surpassing experts’ predictions for a $0.65 per share profit. Shares of AB InBev soared by more than 4% on the NYSE in early trade on Wednesday. Bad weather negatively affected first-quarter sales in China, with revenues falling by 2.7%. Nonetheless, Doukeris expressed optimism regarding the long-term trend towards premiumisation in China, which he believes will benefit InBev’s brands. Revenues increased in other essential markets during the quarter, including Europe, Mexico, Brazil, and Colombia.