Brewer AB InBev softens third-quarter miss with share buyback
AB InBev Budweiser and Bud Light brand beer cans at a store in the Queens borough of New York on Feb. 28, 2024.
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Anheuser-Busch InBev on Thursday reported third quarter profits, revenues and volumes all well behind forecasts, as the top brewer sold less beer in key markets like the United States, Mexico and China.
The world’s largest beer maker however also raised its full-year guidance and announced a $2 billion share buyback over the next 12 months.
“Our teams and partners continue to execute our strategy and we are confident in our ability to deliver”, CEO Michel Doukeris said in a statement, adding AB InBev now expected full-year organic core profit (EBITDA) growth of between 6% and 8%, versus 4-8% previously.
It reported 7.1% organic EBITDA growth for the third quarter, versus analyst expectations for 8.6% growth.
Its revenues and volumes, meanwhile, saw a 2.1% rise and 2.4% decline respectively, compared to analyst forecasts for a 3.4% increase and 0.4% decline.
The maker of Stella Artois and Budweiser beer said it had sold less beer in the United States, its largest market, with sales to wholesalers down 0.2% and sales to retailers down 3%. It did not give a reason for the fall.
It also saw a low single digit decline in Mexico, another critical market for its beers, amid adverse weather and softer consumer demand.
Revenues and volumes were down 16.1% and 14.2% respectively in China, with AB InBev flagging particular weakness in sales in venues such as bars and restaurants.
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