Home Markets Bud Light continues to weigh on AB InBev's results, but revenue rises

Bud Light continues to weigh on AB InBev's results, but revenue rises

by SuperiorInvest

Bud Light, manufactured by Anheuser-Busch.

Joe Raedle | fake images

Rising beer prices led Budweiser owner Anheuser-Busch InBev To boost profits and revenue last year, even U.S. sales of the entry-level Bud Light brand were slowed by boycott actions.

The world's largest brewer on Thursday reported annual revenue of $59.38 billion, up 7.8% but below analyst expectations of $60.48 billion, according to a consensus compiled by LSEG. Volumes sold fell 1.7% and beer brands fell 2.3%.

Core profit (EBITDA) rose 7% year-on-year to nearly $20 billion, also just below a forecast of $20.1 billion.

Belgian-listed shares fell 0.2% in early trading on Thursday.

Fourth quarter sales slightly exceeded expectations with growth of 6.2%. But U.S. revenue fell 17.3% in the quarter, while sales to retailers fell 12.1%, a drop the company attributed primarily to falling sales of Bud Light, which lost its place. as the best-selling beer in the United States.

The company was embroiled in a social media-driven boycott of its flagship Bud Light brand mid-last year. It also weathered broader headwinds in the brewing industry due to higher input costs and reduced consumer spending.

On Thursday, the company announced a full-year dividend of 0.82 euros ($0.89), up from 0.75 euros in 2022.

AB InBev CEO Michel Doukeris said the results were a “testament to the strength of the beer category, the resilience of our business and our people, the consistent execution of our replicable growth drivers and our unwavering commitment to investing for long-term growth and value creation.”

Bernstein analysts said Thursday that the company saw a “strong finish” to 2023 as price increases offset falling sales.

However, they noted “cautious guidance and tight pricing settings in the US,” and noted that sales trends in the latest quarter were weaker than expected, driven by Bud Light's continued impact in South America. North.

China was a bright spot, with profits rising 32% due to the outperformance of premium products, they added.

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