Key Takeaways
- AB InBev reported lower-than-expected volume and revenue on weakness in China and Brazil.
- Overall volume for the parent of Budweiser and other major beer brands was down 1.9%, and beer volume fell 2.2%.
- Sales in all regions other than China and Brazil were higher, with U.S. sales bouncing back after a Q1 decline.
U.S.-listed shares of AB InBev (BUD) sank 12% Thursday as the world’s biggest beermaker’s volume and sales missed estimates on soft demand in China and Brazil.
The parent of the Budweiser and Michelob brands reported second-quarter adjusted earnings per share of $0.98 on revenue that rose 3% year-over-year to $15.00 billion. Analysts surveyed by Visible Alpha were looking for $0.96 and $15.28 billion, respectively.
Volume was down 1.9% to 143.3 million, also below forecasts. Beer volume fell 2.2%, while non-beer volume was actually up 0.3%.
Revenue slumped 6% in China as volumes declined more than 7%. Revenue in Brazil dropped nearly 2%, with volumes falling 6.5%. Revenue grew in all of AB InvBev’s other global markets, with U.S. revenue 2% higher, bouncing back from a 5% slide in the first quarter.
CEO Michel Doukeris said “the operating environment remains dynamic” but noted the company’s consistent execution of its strategy produced a solid first half of the year, and “reinforces our confidence in delivering on our outlook for 2025.”
U.S.-listed shares of AB Inbev had been steadily growing after hitting a more than 2-year low in January. Even with today’s drop, they remain about 17% higher year-to-date.
TradingView