AB InBev gains 10% in second quarter 2024

AB InBev posted a modest earnings increase of 10.2% in the second quarter of 2024, despite total sales falling 0.8% due to the continued decline in beer volumes.

The brewing giant said it has been affected by poor weather conditions in key regions of China, where revenues fell 15.2% and volumes declined 10.4%.

In the U.S., revenues fell 0.6% and “wholesale sales declined 2.7% and retail sales declined 4.1%,” with the 2023 Bud Light boycott taking away the brand’s favor as Americans’ favorite beer. In addition, data from the latest Beer Marketers Insight (BMI) report revealed that Americans are drinking less beer. Such low figures have not been recorded since the 1990s.
Meanwhile, in Argentina, AB InBev felt the effects of “inflationary pressures” on its sales and reported a drop in sales volumes of more than 20% in the second quarter.

Despite some volume declines, AB InBev’s message was broadly positive for the company in terms of fiscal growth, with recognition of the company’s larger brands, such as Budweiser, Corona and Stella Artois, which also contributed to its earnings.
AB InBev CEO Michel Doukeris said of the results: “our global momentum continued this quarter. The strength of our diversified presence and consumer demand for our mega brands enabled another quarter of broad-based sales and earnings growth.”
The Belgian-based company referred to its “consistent execution” and a strategy that “generated double-digit EBITDA growth with margin expansion” with “a 25% increase in underlying earnings per share.”

It also noted that its “revenues increased 2.7%” with revenue growth in approximately 65% of its markets, “driven by a 3.6% increase in revenue per hectoliter as a result of revenue management initiatives.”

In addition, he admitted that despite volume growth in the regions of “Central America, South America, Europe and Africa, mainly offset by performance in China and Argentina, leading to an overall volume decline of 0.8%, the company’s EBITDA increased by 10.2%, driven by production cost efficiencies and tight overhead management.”