LONDON ― Beer giant Anhueser-Busch InBev on Thursday reported forecast-beating core profit for the second quarter (Q2), but its revenues and volumes fell short of expectations.
The world’s largest brewer by volume reported a 10.2-percent rise in second-quarter normalized core profit (Ebitda), surpassing analyst forecasts for growth of 8.3 percent.
Investors see the period as a return to normality for the maker of Budweiser and Stella Artois, after years of issues caused by Covid-19, high cost inflation and a prolonged boycott of key brand Bud Light in the United States, whose impact is now fading.
“We are encouraged with our performance in the first half of the year and remain focused on consistent execution of our strategy,” Chief Executive Officer Michel Doukeris said.
AB InBev’s volumes and revenues lagged forecasts, with volumes down 0.8 percent and revenues up 2.7 percent. Analysts had expected a decline of 0.6 percent and an increase of 3.5 percent, respectively.
The company said volume growth in some key regions across South America was offset by weak performance in China and Argentina, leading to a decline overall.
In China, revenue and volumes declined 15.2 percent and 10.4 percent, respectively, which AB InBev said was due to a soft industry performance and bad weather in key parts of its geographic footprint.
In Argentina, a surge in inflation has put pressure on consumers and beer sales. AB InBev said its volumes declined by more than 20 percent in the second quarter.
The company also saw revenues fall 0.6 percent in the key US market, which has been in focus as the boycott of Bud Light knocked the brew from its top spot as the nation’s best-selling beer.
More than a year since, AB InBev has not regained much of its lost market share, though it said on Thursday it observed an “improved market share trend.”
The company said it had grown core profit in the US market by 17.5 percent, thanks to productivity initiatives and cuts to sales, general and administrative expenses.
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