BELGIUM – AB InBev, the world’s largest brewer, has reported a 2.6 percent increase in revenue year-on-year to US$14.55 billion in the first quarter of 2024, narrowly ahead of analyst estimates.
This growth comes despite a 0.6% drop in volumes sold by the brewing giant.
Anheuser-Busch InBev’s North American operations faced challenges in the first quarter, with volumes in the region falling by 9.9 percent on an organic basis.
Despite this decline, revenue from North America decreased by 8.8 percent organically to US$3.56 billion.
The US market, in particular, experienced a 9.1 percent decline in revenue, attributed to lower volumes of Bud Light. However, the company noted a 1.1 percent increase in revenue per hectolitre driven by revenue management initiatives.
AB InBev’s CEO, Michel Doukeris, emphasized the positive performance of key brands in the US market, including Michelob Ultra and Busch Light.
“Our portfolio is regaining momentum with growth in key brands, such as Michelob Ultra, Busch Light, Kona, Nütrl and Cutwater. Together with our wholesaler partners, we remain laser-focused on executing our long-term strategy,” said Doukeris.
Meanwhile, Busch Light achieved an all-time high share, signaling significant growth opportunities nationally.
Doukeris said. “We all know how relevant the brand is and how much the brand has been growing over the years but, moreover, we are all aware of the headroom for growth that the brand has in terms of geographies and channels and how aligned the brand is with current trends in terms of liquid profile, calories and carbs.”
While revenue grew in approximately 75 percent of the markets, overall volumes experienced a slight decline of 0.6 percent. Growth in the “Middle Americas” and EMEA divisions partially offset declines in North America, South America, and Asia Pacific.
Despite challenges in various markets, AB InBev reported positive performance in South Africa, with revenue increasing by mid-teens and volumes growing by mid-single digits.
In China, revenue declined by 2.7 percent, but revenue per hectolitre increased by 3.7 percent. The company remains optimistic about long-term premiumization trends in China, anticipating continued growth in premium brands.
Looking ahead, AB InBev expects its EBITDA to align with its medium-term outlook. Doukeris emphasized the company’s focus on executing its long-term strategy, highlighting the importance of brand growth and partnerships with wholesalers.
Doukeris said: “We continue to see premiumisation as a very long-term trend for China. As you look at the brands that are growing and where these brands are growing in terms of channels and regions. We don’t see a big change. We see that this premiumisation should continue to thrive to drive expansion.”
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