Anheuser-Busch InBev, the world’s largest brewer, reported better-than-expected first-quarter profit as consumers bought its beers at sharply higher prices.
The Belgian company, which produces around a quarter of all beer consumed globally, said its findings confirm the beer market’s resilience in the face of economic challenges, especially inflation.
The maker of Budweiser, Stella Artois and Corona reiterated its 2023 forecast that EBITDA will grow in line with its medium-term outlook at between 4% and 8%, with revenues growing at above Ebitda.
The company’s beer sales rose 0.4 percent in the first quarter from a year earlier, albeit only due to a sharp increase in the Asia-Pacific region as China steadily rolled back its health restrictions. Volumes in all other regions declined.
Revenues, however, rose sharply as the company enforced price hikes and some consumers switched to more expensive beers or packaging formats.
The first-quarter results of AB InBev’s rivals Heineken and Carlsberg also showed consumers willingness to absorb higher prices.
The company’s core profit increased 13.6% on a like-for-like basis to $4.76 billion, compared with the 5.6% average increase expected in research compiled by the company.
Some analysts said the strong first quarter may have prompted AB InBev to raise its guidance, but suggested a US conservative backlash against Bud Light beer due to a social media promotion by a transgender influencer could be cause for caution for the company.
Source: Terra
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