BELGIUM – Anheuser-Busch InBev (AB InBev) has reported a third-quarter decline in beer volumes, attributed to a slowdown in consumer spending that has led drinkers to opt for more affordable beer options.
The company’s total beer volumes fell by 2.4 percent year-over-year, with a 3.1 percent decline in own beer brands, partially offset by a 0.6 percent rise in non-beer products. Weak performance in China and Argentina were primary contributors to the decline.
In China, where AB InBev sells popular brands including Sedrin and Harbin, sales dropped by 16.1 percent, impacted by lower demand in bars and restaurants as economic pressures led consumers to reduce spending.
Similarly, Argentina saw a downturn in beer sales due to high inflation, which has affected consumer purchasing power.
Despite the dip in beer volumes, AB InBev’s overall revenue increased by 2.1 percent to US$15.57 billion, up from US$15.04 billion during the same period in 2023, largely due to stabilizing sales in the United States.
Michel Doukeris, CEO of AB InBev, noted that the U.S. beer market showed signs of recovery, with volume and revenue growth led by brands like Michelob ULTRA and Busch Light.
AB InBev’s megabrands saw a combined revenue increase of 3.1 percent, with Corona recording 10.2 percent growth outside its home market in the third quarter.
Doukeris attributed part of the company’s revenue success to its B2B digital platform, BEES, which achieved 72 percent of total revenue through its platform with a growing active user base of 3.9 million monthly users.
Normalized EBITDA rose by 7.1 percent to US$5.42 billion in the quarter, with a 169-basis-point expansion in EBITDA margin to reach 36.0 percent.
Profit attributable to equity holders, excluding non-underlying items and hyperinflation impacts, increased to US$1.97 billion from US$1.74 billion in the previous year.
In key African markets, AB InBev saw varied results. Revenue in South Africa rose by low teens, driven by low-single-digit volume growth and high-single-digit growth in revenue per hectoliter, a result of revenue management and premiumization initiatives.
Nigeria also posted strong double-digit revenue growth, largely due to effective revenue management in a highly inflationary environment.
Looking ahead, AB InBev expects full-year 2024 EBITDA growth between 6-8 pecent, factoring in inflation and other economic conditions.
Doukeris stated that the company is on track to meet its raised EBITDA growth targets, citing continued strategic execution across global markets.
In addition, AB InBev announced a US$2 billion share buyback program set to be completed over the next 12 months, following a US$1 billion buyback completed earlier this year, underscoring the company’s commitment to shareholder returns.
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