BELGIUM – AB InBev has posted organic revenue growth of 12.1% for its third quarter, enabling it to raise the full year’s revenue outlook by between 6% and 8% from a healthy combination of volume and price.

The Belgium-based brewer recorded a rise in EBITDA of 6.5% on a like-for-like basis to US$5.31 billion, having sold 3.7% more beer and other drinks during the July to September period.

The total revenue was ahead 12.1% at US$14.3bn, with own beer volumes up 3.4% and non-beer volumes 5.2% higher.

Michel Doukeris, the CEO, of AB InBev, said: We delivered broad-based volume growth of 3.7% this quarter resulting in an accelerated increase in revenue of 12.1%. “

We continue to see strong consumer demand for our portfolio and a resilient beer category as we navigate the dynamic operating environment. As a result of our performance and continued momentum, we are raising the bottom-end of our FY22 EBITDA outlook.”

The group said strong performances in Mexico, Brazil, and South Africa helped its overall result, while it also noted that Budweiser sales rose nearly 8% despite disruption from widespread lockdowns during the period in China, its most important market.

China was a drag on the group’s performance, with revenue growing only 1.7% and EBITDA falling by 2.3%.

In both Mexico and South Africa, revenue “grew by mid-twenties,” while volumes were up by more than 10%. Brazil had a revenue rise of 20.1%, with a volume growth of 2.4%.

In the lead and grow category, AB InBev’s global non-alcohol beer portfolio delivered double-digit revenue growth this quarter led by Budweiser Zero and Stella Artois Liberté in the US, where the company delivered revenue growth of 1.9%.

In the US, the beverage giant noted that Sales-to-wholesalers (STWs) were down by 1.8% and sales-to-retailers (STRs) declined by 1.7%.

The company’s premium core portfolio grew revenue by low teens this quarter, led by continued double-digit growth of Michelob ULTRA in the US and Mexico and further expansion of Spaten in Brazil.

The global brands grew revenue by 12.7% outside of their home markets this quarter, led by Corona with 23.5% growth, Budweiser grew by 8.9% and Stella Artois grew by 7.0% with continued growth in focus markets such as the US and Brazil.

The global Beyond Beer business grew revenue by over 10% this quarter, contributing more than US$400 million of revenue.

As of 30 September 2022, AB InBev’s BEES, which is live in 19 markets, captured approximately US$7.7 billion in gross merchandise value (GMV), a growth of over 40% versus 3Q21.

Meanwhile, the digital direct-to-consumer (DTC) products, Ze Delivery, TaDa, and PerfectDraft, available in 17 markets, generated over US$100 million in revenue and 17 million orders in the quarter.

Combined, the company’s omnichannel DTC ecosystem of digital and physical DTC products generated revenue of over US$1 billion in 9M22, mid-teens growth versus 9M21.

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